EU Unveils €3.8 Billion Plan to Bolster European battery Industry, Secure Automotive Future
Brussels – The European Union has launched a comprehensive action plan backed by €3.8 billion (approximately $3.8 billion USD) to strengthen its automotive battery sector and secure a leading role in clean vehicle technology. The initiative, announced in March following a “strategic dialog” initiated in early 2025, aims to address growing concerns over strategic dependencies and ensure the sustainability and competitiveness of the European automotive industry.
Responding to shifting public opinion, European Commission President Ursula von der Leyen emphasized the EU’s commitment to innovation and the development of clean solutions, particularly in battery production. “We want to strengthen production locally to avoid strategic addictions, especially in battery,” von der Leyen stated, while reaffirming previously accepted emission goals with a pledge for a “pragmatic, flexible approach.”
The plan prioritizes the creation of cost-competitive battery cell production within Europe and maximizing European added value throughout the entire supply chain. Key components of the initiative include:
* Direct support for the battery industry via the Innovation Fund.
* Joint public and private investment through the horizon Europe program.
* The “Battery Booster” package, offering financing and credit programs for EU cell and component manufacturers.
* Legal groundwork for potential local content requirements.
* Continued support for the Batt4eu Partnership, focused on developing next-generation accumulator technologies.
* establishment of a new entity to secure access to critical raw materials.
* Expansion of battery recycling capacities.
* Workforce retraining programs funded by the ESF+ and EGF.
The €3.8 billion budget is allocated as follows:
* €1.8 billion from the Innovation fund dedicated to the battery Booster package.
* €350 million for Batt4Eu, with an additional €1 billion allocated under Horizon Europe.
* €570 million for the development of choice fuel infrastructure and charging networks.
* €90 million for worker training initiatives within the Pact for skills.
Beyond battery production,the plan also focuses on accelerating the adoption of emission-free vehicles in corporate fleets and establishing a European association for connected and autonomous vehicles. Officials anticipate a positive impact on industrial production within member states, particularly in regions like Hungary, which is developing a significant battery manufacturing center.