When an electric vehicle factory knows it will earn a fixed bonus for every battery pack it builds, it can finally plan for the future. That predictability is exactly what Europe's clean tech manufacturers are asking for — and right now, they don't have it.
On March 4, 2026, the European Commission proposed a major new law called the Industrial Accelerator Act, setting a goal to raise industrial manufacturing to 20 percent of the EU's total economic output by 2035. A separate law, the Net Zero Industry Act, already set a target that by 2030, Europe should make at least 40 percent of the clean energy technologies it uses each year — like solar panels, wind turbines, and batteries — within its own borders. Together, these laws represent one of the most ambitious attempts in history to rebuild a continent's manufacturing base around clean technology.
The Commission is also preparing an Electrification Action Plan, expected on July 15, which aims to speed up the switch from fossil fuels to electricity in cars, home heating, and factories. The idea is to reduce Europe's dependence on imported oil and gas, which became painfully clear during recent energy crises.
But according to an open letter sent to the Commission by a broad coalition — including the advocacy group Transport & Environment, major car manufacturers, clean tech companies, and investors — the current rules for government subsidies are getting in the way. The problem lies in a section of the Clean Industrial Deal State Aid Framework called Article 6.2, which governs aid for clean technology manufacturing.
The coalition argues that under the current rules, subsidies for factories aren't "bankable" — meaning companies can't easily use them to attract private investment. Right now, each aid deal requires lengthy individual negotiations, complicated calculations of funding gaps, and promises to repay money if conditions aren't met. For a company trying to build a multi-billion euro battery factory, that uncertainty makes it nearly impossible to secure the remaining financing it needs.
The EU has already solved this problem for some sectors. For example, it offers a fixed bonus of 20,000 to 30,000 euros for every ultra-fast electric vehicle charger installed. The coalition wants similar clear, predictable support for manufacturing: a fixed premium per unit produced — such as euros per kilowatt-hour of battery cells, euros per kilogram of renewable hydrogen, or euros per watt of solar modules.
The letter calls on the Commission to revise Article 6.2 before the Electrification Action Plan launches. Specifically, the coalition wants output-based support that rewards actual production, clear caps to prevent a few wealthy countries from outcompeting smaller ones, eligibility rules that favor companies genuinely committed to Europe, and faster, more predictable approval processes. The goal is a system where clean tech manufacturers can confidently plan, invest, and scale — knowing that Europe has their back.