EU Battery Booster Package sends clear signal for battery manufacturing in Europe

The European Battery Alliance (EBA) welcomes today’s announcement by Executive Vice-President Stéphane Séjourné of the Battery Booster package, a core element of the EU Automotive Package aimed at strengthening Europe’s battery industrial base. The initiative mobilises €1.8 billion in targeted support and is structured around five key pillars that together are intended to accelerate the development of a fully European battery value chain:

• Financing to support investment and industrial scale-up;

• Access to raw materials and critical battery materials to secure upstream supply chains;

• Stricter conditions on foreign investment to protect strategic assets;

• Demand-side support through local content requirements, particularly where public funding is involved;

• Acceleration of research and innovation to sustain Europe’s technological leadership.

While today’s announcement focused primarily on financing and industrial deployment, the Battery Booster framework sets out a broader and coherent approach combining investment, regulation and market incentives.

At a time of intense global competition, the package sends a clear signal that the European Union is committed to anchoring battery production in Europe. By strengthening investment conditions and progressively reinforcing demand for EU-made batteries, it improves the business case for domestic manufacturing and reduces reliance on imports.

A strong European battery value chain is essential for the future of Europe’s automotive and clean mobility sectors, helping to secure supply, limit exposure to price shocks, support high-quality jobs and safeguard Europe’s industrial leadership.

Targeted financing to bridge the “valley of death”

At the heart of the Battery Booster package are financing measures designed to address the most pressing challenges facing Europe’s battery manufacturers.

The package includes €1.5 billion in interest-free loans for European battery cell producers, complemented by €300 million for critical raw materials projects, within the overall €1.8 billion envelope. These measures directly target the “valley of death” between early investment and full-scale production, where high capital costs and global price competition have slowed industrial ramp-up.

This targeted support will help improve cost competitiveness, enabling European manufacturers to scale production, achieve economies of scale and compete with heavily subsidised global players. By strengthening both upstream raw material supply and downstream cell manufacturing, the package reinforces the resilience of the entire battery ecosystem.

Speed of implementation will be critical. Only rapid deployment of funds can restore confidence, mobilise private investment and help projects move swiftly from planning to production.

Strengthening competitiveness and demand for European batteries

Beyond direct financing, the Battery Booster package introduces broader policy measures to improve cost competitiveness, secure raw material supply chains and promote sustainable and resilient battery production. Together, these measures aim to reduce Europe’s reliance on dominant global suppliers and strengthen strategic autonomy.

The package is also closely aligned with upcoming EU legislation, including the Industrial Accelerator Act, which will further prioritise local and EU content in batteries when public funding is used. Taken together, these elements create a more predictable and supportive market environment for battery manufacturers operating in Europe.

A positive signal for long-term industrial competitiveness

The EBA also welcomes confirmation that production ramp-up support could be included in the EU’s next long-term budget. In a highly competitive global context, such targeted support will be essential to help European producers close early cost gaps – reflecting approaches used by competitors during the early development of their own battery industries.

This longer-term perspective sends an important signal to investors that Europe intends not only to ‘launch’, but to sustain, a competitive battery manufacturing base over the coming decade.

Strengthening the market for European batteries

The Battery Booster package further includes a commitment to apply Made-in-Europe requirements when public funds are used, alongside tighter conditions on foreign direct investment.

The EBA supports these measures as important tools to consolidate the European battery market, protect strategic assets and ensure that public investment translates into lasting industrial capacity in Europe. As with other elements of the package, clear and timely implementation will be key.

An ongoing dialogue with policymakers

The announcement follows months of close engagement between policymakers and industry as Europe’s battery manufacturers face growing competitive pressure.

During this period, EBA250 has been engaged in dialogues with European institutions (read here and here), contributing with industry perspectives and practical insights on the conditions needed to support the sector’s scale-up. These discussions have helped build a shared understanding of the strategic importance of batteries for Europe’s industrial future, which is reflected in today’s announcement.

The European Battery Alliance looks ahead to the implementation phase, noting that timely delivery and clear execution will be decisive in enabling Europe’s battery industry to scale, compete globally and remain firmly anchored in Europe.

Read more on today’s announcement regarding the Automotive Package and Battery Booster here: Remarks by Executive Vice-President Séjourné and Commissioners Hoekstra, Tzitzikostas and Dombrovski