Source: European Parliament
Maximising the impact of EU funding is key to design and implement EU budget. The Commission will propose for the next multi-annual financial framework a simpler and more impactful budget, focused on EU priorities, including through a European Competitiveness Fund and better use of EU budget to further leverage national, private and institutional financing.
The Commission is closely following Northvolt’s economic situation. The Commission will pay attention to the future of specific assets that could still have a real added value for the European value chain. The case of Northvolt must allow the Commission to draw lessons for a competitive and resilient battery industry in Europe.
Public support has been crucial for the development of the EU battery industry. This includes two Important Projects of Common European Interest[1], the Innovation Fund[2], InvestEU[3] and the Temporary Crisis and Transition Framework[4]. Efforts are being made to diversify supply chains and reduce dependencies on single suppliers[5].
The Commission released the Clean Industrial Deal on 26 February 2025 proposing measures that will help decarbonise European industry.
Following the Strategic Dialogue on the Future of the European Automotive Industry[6], an Action Plan[7] was published on 5 March 2025, to support the sector’s global competitiveness. This plan includes a ‘Battery Booster’ to support production of battery cells and components through direct funding and non-price criteria for components. 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 and is also looking into possibilities for financing the ramp up of European production lines.
- [1] https://competition-policy.ec.europa.eu/state-aid/ipcei/approved-ipceis/batteries-value-chain_en .
- [2] https://climate.ec.europa.eu/eu-action/eu-funding-climate-action/innovation-fund_en .
- [3] https://investeu.europa.eu/index_en .
- [4] https://competition-policy.ec.europa.eu/state-aid/temporary-crisis-and-transition-framework_en .
- [5] https://cinea.ec.europa.eu/funding-opportunities/calls-proposals/innovation-fund-2024-call-and-battery-calls_en .
- [6] https://ec.europa.eu/commission/presscorner/detail/en/ip_25_378 .
- [7] https://transport.ec.europa.eu/document/download/89b3143e-09b6-4ae6-a826-932b90ed0816_en?filename=Communication%20-%20Action%20Plan.pdf .