Innovation Fund calls for proposals – new funding instrument for EV batteries

The 2024 Innovation Fund calls for proposals have been launched this week, with a total of €3.4 billion to boost accelerate the deployment of innovative decarbonisation technologies in Europe, including battery manufacturing for electric vehicles (EV). Prospective applicants for the  battery call have until 24 April 2025, 17:00 CET to apply via the EU Funding and Tenders Portal. 

As a response to the the economic hurdles facing Europe’s battery value chain, including its gigafactories, multiple support mechanisms are essential. These financial incentives intend to prioritize EU-based projects and address the barriers to scaling up industrial production. 

Boosting net-zero technologies and EV battery cell manufacturing across Europe

As part of the Innovation Fund, the European Commission has opened six calls for proposals, with a combined budget of €3.4 billion, focusing on accelerating innovative decarbonisation technologies. 

For the first time, a €1 billion funding call (IF24 Battery) is indeed dedicated specifically to electric vehicle battery cell manufacturing. This initiative supports projects that develop innovative EV battery cells or implement cutting-edge manufacturing techniques, processes, and technologies. This funding call represents just one element of a broader strategy to drive investment in technologies critical to Europe’s clean energy transition and long-term competitiveness.

Additionally, a €700 million call, focused on “Cleantech Manufacturing,” seeks to address financing gaps within the EU cleantech manufacturing. This initiative is also dedicated to manufacturing within the batteries value chain, complementing the IF24 Battery funding call and reinforcing efforts to bolster Europe’s clean energy ecosystem.

Strengthening investment through strategic partnerships 

In a complementary move, the European Commission has partnered with the European Investment Bank (EIB) to bolster investments in the EU’s battery manufacturing sector. This partnership includes a €200 million loan guarantee top-up to the InvestEU programme, funded by the Innovation Fund. This financial support will target innovative projects along the European battery value chain and facilitate additional EIB venture debt operations over the next three years. 

As part of this collaboration, the EIB plans to invest an additional €1.8 billion in the broader battery value chain. Combined with public support, this will result in €3 billion directed toward fostering a competitive and sustainable European battery industry.