EU Unveils โฌ3.8 โBillion Plan to Bolster European battery Industry,โข Secure Automotiveโข Future
Brussels – โ Theโ European โขUnion โhas launched a โcomprehensive action plan backed by โฌ3.8 โขbillion (approximately $3.8โ billion USD) to strengthen its automotive battery sector and secure a leadingโ roleโ in โคclean vehicle technology. Theโฃ initiative, announced in March following a “strategic dialog” initiatedโข in early 2025, aims to address growing โฃconcerns โover strategic dependencies and ensure the sustainabilityโ and competitiveness ofโ the European automotive โฃindustry.
Responding to shifting public opinion, European Commission โฃPresidentโฃ Ursula von der โLeyenโ emphasizedโ the EU’sโค commitment to innovation and the development of clean solutions, particularly inโ batteryโค production. “We wantโ to strengthen production locally โto avoid strategic addictions, especially in battery,” von der Leyen stated, while reaffirming previously accepted emission goals with โa pledge forโฃ a “pragmatic, flexible approach.”
Theโค plan prioritizes theโ creation of cost-competitive battery cell production โwithin โEurope and maximizing European added value throughout the entire supply chain. Key components of the initiative include:
*โค โค Direct support for the battery industry โฃvia the โInnovation Fund.
* โข Joint publicโ and private investmentโ through the horizon โขEurope โคprogram.
* The “Battery Booster” package, offering financing and creditโฃ programs for EU cell and component manufacturers.
* โ Legalโ groundwork for potential local contentโฃ requirements.
* Continued โขsupport for the Batt4eu Partnership, focused on โขdevelopingโฃ next-generation accumulator โtechnologies.
* โ establishment of โa new entity to secure access toโ critical raw materials.
* โข Expansion โof โbattery โขrecycling capacities.
* Workforce โคretraining programs funded by the ESF+ and EGF.
The โขโฌ3.8 billion budget is allocated as follows:
* โโฌ1.8 billion from the Innovation fund dedicated โคto the battery Booster โpackage.
* โฌ350 million โคfor Batt4Eu, with an additional โฌ1โค billion allocated under Horizon Europe.
* โฃ โฌ570โ millionโ for the development of โคchoice fuel infrastructure โขand charging networks.
* โฌ90 million โforโค worker training initiatives within the Pact for skills.
Beyond batteryโ production,theโ plan also focuses on accelerating โthe โขadoption of emission-free vehiclesโฃ in corporate fleets and establishing a European association for connected and autonomous vehicles. Officials โขanticipate a positive impact on industrial productionโ within member states, particularly in regions like Hungary, which is developing โa significantโ battery manufacturing center.