Battery Booster Package - Industrial Action Plan for the European automotive sector

Country / jurisdiction: European Union · Year: 2025 · Status: In force · Level: Regional · Type: Voluntary

In March 2025, the European Commission released an Industrial Action Plan for the European automotive sector, addressing the significant transformation and challenges faced by the industry. The plan outlines concrete measures to secure global competitiveness and maintain a strong European production base through action in five key areas: innovation and digitalisation, clean mobility, competitiveness and supply chain resilience, skills and social dimension, and level playing field and business environment.

The Battery Booster package is a key component of the Action Plan aimed at achieving near-term cost competitiveness of domestically produced battery cells and components. The package includes several financial measures and support mechanisms:

Innovation Fund: Up to EUR 3 billion for electric vehicle battery manufacturing. The first call for EUR 1 billion was launched on 3 December 2024.

InvestEU Top-Up: An additional EUR 200 million from the Innovation Fund will support innovative projects along the European battery manufacturing value chain, enabling additional EIB Group venture debt operations over 2025-2027.

Support for Battery Manufacturing: The Commission will make available EUR 1.8 billion in the next two years to support companies manufacturing batteries in the EU by mobilising resources from the Innovation Fund.

EU Direct Production Support: The Commission will explore possibilities for direct production support to companies manufacturing batteries in the EU, potentially combined with State aid.

Non-Price Criteria: When setting up funding instruments, non-price criteria such as resilience requirements will be considered for both EU and Member State funding.

European Content Requirements: Upcoming legislation, including the Industrial Decarbonisation Accelerator Act and the Circular Economy Act, will address European content requirements on battery cells and components in electric vehicles sold in the EU.

Standardisation and Guidance: The Commission will provide clarity on a simple calculation method for the battery carbon footprint and explore standardisation interventions to benefit the European battery ecosystem.

This package aims to boost European added value, support the entire battery value chain, and ensure a resilient and competitive battery manufacturing sector in Europe.

Official source: https://transport.ec.europa.eu/document/download/89b3143e-09b6-4ae6-a826-932b90ed0816_en?filename=Communication%20-%20Action%20Plan.pdf