The EU has approved a €3.2bn fund to promote the research and development of batteries involving seven European countries, the commission said in a statement.
Monday’s announcement comes as Brussels seeks to spot strategic areas where it can help companies expand and develop new technologies.
Belgium, Finland, France, Germany, Italy, Poland and Sweden will provide funding of up to €3.2bn for the project, which the commission said it expects to lead to a further €5bn in private investment.
The project is set to be completed by 2031, with differing timelines for each subsection.
Margrethe Vestager, executive vice-president in charge of promoting technology in Europe and competition commissioner, said: “Battery production in Europe is of strategic interest for our economy and society because of its potential in terms of clean mobility and energy, job creation, sustainability and competitiveness.”
She added: “The approved aid will ensure that this important project can go ahead without unduly distorting competition.”
Maroš Šefčovič, vice-president for interinstitutional relations and foresight, said: “Thanks to intensive efforts by seven member states, industry and the commission, Europe’s first major pan-European battery ecosystem is emerging, with lead projects in all segments of this strategic value chain.”
The project will involve 17 direct participants, mostly industrial actors, including small and medium-sized businesses, the commission said.
Representatives from the member states will monitor the project.