The European Commission has announced that six electric vehicle (EV) battery cell manufacturing projects will receive a total of €852m (US$997m) in grants from the Innovation Fund, using revenues from the EU Emissions Trading System (EU ETS). These grants follow a first battery call under the fund, launched in December 2024, aimed at accelerating the growth of and investment in the EU’s battery manufacturing industry.
The projects support innovation in the production of EV battery cells and the deployment of innovative and sustainable manufacturing techniques, processes and technologies. The selected projects represent strategic investments that are intended to support Europe’s transition to a clean, competitive and resilient industrial base; reduce the dependence on imports; and foster the development of clean technologies and industrial leadership.
The following six projects have been selected for funding as part of a broader initiative to boost battery production across Europe:
ACCEPT – Automotive Cells Company European Production Take-off, located in France and led by Automotive Cells Company (ACC);
AGATHE – Advanced Gigafactory Aiming at Tempering greenhouse gases Emissions, also based in France and led by Verkor;
CF3_at_Scale – scaling of innovative manufacturing processes for high-performance cells, located in Germany under the Cellforce Group;
NOVO One – NOVO One Gigafactory, in Sweden, by NOVO Energy; WGF2G – Willstatt GigaFactory 2 GWh, located in Germany and led by Leclanché;
46inEU – ‘Powering the Future: 46 Cylinders, Infinite Possibilities in Europe’ initiative, based in Poland and driven by LG Energy Solution.
All projects are expected to begin operations before 2030. They will receive support that covers both their capital and operational expenditure, and which will be disbursed upon meeting the specific project’s milestones. Part of the disbursement can happen before entry into operation to support the investment phase of the project.
Milestones
Over the first 10 years of operation, the projects are projected to reduce greenhouse gas (GHG) emissions by approximately 91 million metric tons of CO2 equivalent. Upon completion, these projects will have a combined manufacturing capacity of around 56GWh of EV battery cells per year.
Successful applicants are expected to sign their respective grant agreements with the European Climate, Infrastructure and Environment Executive Agency (CINEA) in the third quarter of 2025.
The selection process
The Innovation Fund 24 Battery call attracted 14 proposals from eight countries, out of which 13 met the call’s eligibility criteria. The six awarded projects were selected through an evaluation by independent experts against seven award criteria: the projects’ degree of innovation; their potential to reduce GHG emissions including the carbon footprint of the manufacturing process itself; operational, financial and technical maturity; replicability; contributions to the EUs security of supply and cost efficiency.
The targeted battery call for proposals is part of a broader initiative to strengthen Europe’s battery value chain with up to €3bn (US$3.5bn) in financial support. It seeks to address key economic and technical barriers facing the sector, particularly in light of global competition and supply chain vulnerabilities.
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