European Commission: Communication on a Strategic Approach to Batteries

Key Chapter Title List

1. Support EU manufacturers in scaling up production through financial backing
2. Develop resilient upstream value chains for access to raw materials and inputs
3. Ensure value-adding investment and a level playing field for industry within the EU
4. Support procurement of "Made in the EU" to enhance resilience and sustainability
5. Promote research, innovation, and skills development in the EU battery value chain
6. Coordinate actions to maximize impact across Europe

Document Introduction

This communication is the official policy document of the "Battery Boost Strategy" published by the European Commission in December 2025, aiming to systematically address the severe challenges facing the EU battery industry and accelerate its strategic autonomy. The document begins by clearly stating that the battery industry holds a central position for the EU in achieving its climate goals, enhancing economic resilience, energy security, and defense capabilities. However, the current structural overcapacity in the global battery value chain, the unfair international competitive environment (particularly large-scale subsidies from non-EU countries), and deep dependence on a single external market (especially China) for critical raw materials, mid- and upstream components, and technology are seriously threatening the healthy development of the EU's battery ecosystem and could undermine its competitiveness in critical defense and energy security applications.

To this end, the European Commission has proposed the "Battery Boost" initiative centered on six pillars. Pillar One focuses on directly supporting EU battery manufacturers through financial instruments to navigate the costly production ramp-up phase. Core measures include mobilizing €1.5 billion from the Innovation Fund via a "Battery Boost Facility" to provide interest-free loans. Pillar Two aims to build a more resilient upstream value chain, ensuring raw material supply and promoting a circular economy through measures such as designating strategic projects under the Critical Raw Materials Act, implementing the "RESourceEU" action plan, and banning the export of spent lithium batteries and black mass to non-OECD countries from 2026. Pillar Three focuses on setting conditions for foreign investment to ensure it brings tangible added value such as technology transfer and supply chain integration to the EU's battery value chain, and utilizes tools like the Foreign Subsidies Regulation to maintain a level playing field in the single market.

Pillar Four focuses on stimulating internal demand, announcing that it will propose "EU content requirements" for batteries and their components through the Industrial Accelerator Act, and, based on the Net-Zero Industry Act, guide Member States to incorporate supply chain resilience criteria into electric vehicle subsidy schemes from January 2026, thereby directing public funds to support local manufacturing. Pillar Five emphasizes increasing investment in battery R&D and innovation through mechanisms such as the Batt4EU partnership under the Horizon Europe program, and cultivating skilled talent through platforms like the Net-Zero Industry Academy. Pillar Six proposes the introduction of a new "Competitiveness Coordination Tool," aiming to coordinate actions at the EU, Member State, and regional levels, particularly achieving strategic alignment on investment, skills, and demand-side measures.

The conclusion of the document emphasizes the urgency of time and outlines the next steps: the Commission will immediately begin setting up the "Battery Boost Facility," planning to launch the relevant call for proposals in the first quarter of 2026; will propose the Industrial Accelerator Act next month; and urges Member States to implement the relevant standards from the Net-Zero Industry Act starting January 2026. This strategy comprehensively employs various policy tools including financial support, regulatory intervention, trade defense, R&D incentives, and cross-level coordination, demonstrating the EU's comprehensive and urgent plan to reshape industrial sovereignty and reduce geopolitical risks in key strategic technology areas.