Batteries European Partnership Association
BEPA
BATT4EU is a Co-programmed Partnership established under Horizon Europe – the Framework Programme for Research and Innovation of the European Union- that aims to achieve a competitive and sustainable European industrial value-chain for e-mobility and stationary applications.
ID: 418174893786-88
Lobbying Activity
Meeting with Vincent Berrutto (Head of Unit Energy)
20 Oct 2025 · Batteries
Response to Evaluation on the operation of the Innovation Fund - 2025
8 Jul 2025
BEPA Recommendations for the Upcoming IF25 Calls The Batteries European Partnership Association (BEPA) represents European research and innovation across the entire battery value chain. We work to set technological priorities, shape funding and policy frameworks, and strengthen collaboration to accelerate innovation and industrialisation in Europe. Batteries are central to Europes green and digital transitionsfrom clean mobility and energy storage to defense and digital technologies. Building on the success of the BATT4EU partnership, which has mobilised over 500 million in EU funding and brought together more than 750 stakeholders, BEPA strongly supports continued and targeted investment in battery innovation. In this context, the Innovation Fund is a key instrument for deploying clean technologies. Its evolution to include battery manufacturing calls is welcomed, offering a strategic opportunity to align public investment with EU industrial goals. KEY RECOMMENDATIONS 1. Develop a Fit-for-Purpose Call for Battery Cell Production The current Innovation Fund structure supports early-stage deployment or full-scale CAPEX investment but neglects the ramp-up phase, where projects face the highest risk. This phase is marked by elevated OPEX, high scrap rates, unstable yields, and integration challenges due to: - The complexity of large-scale, iterative cell development with multiple actors; - Lack of turnkey machinery and equipment based on European technology; - Insufficient operational data impeding standardisation and digitalisation; - Skilled labour shortages and workforce ramp-up challenges. To close this gap, the call should include dedicated output-based support, such as a fixed premium with a sliding scale, targeting the ramp-up phase. This would strengthen the competitiveness of EU manufacturers, stimulate European machinery production, and support upstream and downstream value chain actors. Critically, this approach is also vital to de-risking next-generation battery technologies like solid-state and sodium-ion. These technologies are essential to Europes strategic goals but face even higher uncertainty and investment barriers. Supporting their scale-up would boost bankability, attract private capital, and position Europe as a leader in clean tech manufacturing. 2. Ensure Structural Support for Battery Projects Despite their strategic role, battery projects have received only 5% of the Innovation Funds total 12 billion allocation. To reflect their importance to the Clean Industrial Deal and strengthen Europes industrial autonomy, the following actions are needed: - Expand scope beyond EVs to include stationary storage, aviation, defense, and other applications crucial to competitiveness and sovereignty. - Ensure dedicated funding for upstream segments and battery recycling under regular grants to secure supply chain resilience. - Earmark support for next-generation technologies under Clean Tech Manufacturing and Pilot Project calls to address high development and scale-up costs. - Enable circularity and innovation through support for enabling technologies like AI-driven battery management systems, high-efficiency manufacturing, advanced recycling, and second-life applications. 3. Leverage Sustainability and Resilience to Drive Domestic Demand To create long-term industrial growth, funding schemes must embed sustainability and resilience criteria. This helps stimulate innovation, encourage local sourcing, and promote circular practices, strengthening the domestic supply chain and reducing external dependencies. Such criteria generate positive spill-over effectsboosting skills development, supporting infrastructure, and fostering regional economic cohesion. By tying public support to clear sustainability and resilience goals, the Innovation Fund can reinforce public trust, enhance economic resilience, and turn these values into strategic drivers of competitiveness.
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