Securing the EU’s battery supply
The global battery sector is intensely competitive. According to the 2025 report from the Commission’s Clean Energy Technology Observatory. In 2023 the EU accounted for 8% of the global Li-ion battery production capacity. This being said, the EU still relies on imports to meet 50% of its demand, with approximately 83% of global Li-ion battery production capacity situated in China in 2023.
In this respect, the EU is determined to close the gap with China and the United States and assert itself as a global leader in this key industry.
As part of these efforts, in July 2025, the Commission announced a total of €852 million in strategic investments in 6 pioneering EV battery cell manufacturing projects, in the form of grants from the Innovation Fund. This followed the Commission’s 2023 announcement to strengthen the EU's battery manufacturing capacity by allocating up to €3 billion in targeted support to incentivise investment in domestic EV battery cell manufacturing capacity to reduce reliance on foreign suppliers.
Read more: In focus: Supercharging the transition with energy storage solutions
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