EU offers €1.5b in interest-free loans to fuel EV battery production

EU offers €1.5b in interest-free loans to fuel EV battery production
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The European Commission has opened applications for up to €1.5 billion in interest-free loans to support electric-vehicle battery cell manufacturing projects across the European Economic Area, with submissions open until 30 September 2026.

The funding is available under the Battery Booster Facility, which was established in June 2026, the Commission noted in a release on Tuesday.

The facility is financed through the EU Innovation Fund using revenues from the EU Emissions Trading System — a carbon market that requires certain industries to pay for some of their greenhouse-gas emissions.

Loans are intended for battery cell manufacturing projects during the ramp-up stage between pre-series production and full commercial operation.

Projects must be located in the European Economic Area and make battery cells suitable for electric-vehicle use, with applicants required to be in the ramp-up phase when the call opened.

Who can apply and what support is available

Applicants must be proposing their first full commercial-scale production project for electric-vehicle battery cells anywhere in the world and plan annual output of at least 10 gigawatt-hours, the Commission said.

Successful applicants can receive interest-free loans covering up to 60% of eligible costs, capped at €500 million per project.

Applications will be assessed on criteria including technical and financial maturity, and the project’s added value for Europe’s battery manufacturing ecosystem.


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