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Industries · EV / ELECTRIC VEHICLES

EV and e-mobility funding consultant for companies across the EU

We match EV, battery and charging technology companies in the EU with the European and German programmes that fit each stage, from battery R&D funding for cells, drives and power electronics to manufacturing scale-up. We write the documentation and deal with the authorities.

What we fund

Funding from the first test cell to series production

EV and battery hardware moves from R&D through validation to manufacturing scale-up, and EV funding splits along the same path: some programmes pay for the engineering team and the test benches, others for the production line. The right mix depends on your stage, where the company and the site are located, and whether you work alone or with partners.

Why this industry

Why EV and battery companies have more funding options than they use

Automotive funding for R&D and battery grants come from EU and national budgets, some for development and some for manufacturing. Most technology companies only check one side.

EU

Open to companies across the EU

EU-level funding needs no German entity. The EIC Accelerator and Horizon Europe accept companies established in an EU member state or an associated country, Eurostars accepts SMEs from its participating countries, and the EU Innovation Fund funds projects located in the EU, Norway, Iceland or Liechtenstein.

DE

Germany as an R&D and production base

A German company, or the German permanent establishment of a foreign one, can claim the Research Allowance. KMU-innovativ and ZIM ask for a permanent establishment or branch in Germany. GRW funds investment at a site in an eligible German region.

Lab to fab

R&D and manufacturing are funded separately

R&D programmes pay for development and validation. The EU Innovation Fund and GRW pay for manufacturing investment, and KfW innovation loans finance innovation projects through to implementation. Planning both early avoids a gap between the pilot line and series production.

Years

Long validation cycles

Cells, drives and complete systems run through years of testing before they are proven. The Research Allowance is claimed per financial year once the year has ended, so multi-year development is claimed year by year, as long as each year's work meets the R&D criteria.

Eligible activities

EV and battery R&D that funders typically support

Funders look for novelty and technical risk. Each programme then sets its own rules on stage, partners and which costs count.

Battery cells and packs

  • New cell chemistries, electrode or electrolyte development
  • Pack design for energy density, safety or thermal behaviour
  • Cell-to-pack and module engineering under new constraints

Typical routes: Research Allowance, Horizon Europe Cluster 5, EIC Accelerator; the EU Innovation Fund once cell or pack manufacturing scales.

Battery management, power electronics and charging

  • BMS algorithms for state estimation and balancing
  • Inverter and converter topologies and control
  • Fast-charging methods under thermal and degradation limits
  • Charger power electronics or vehicle-to-grid communication developed under technical uncertainty

Typical routes: Research Allowance, KMU-innovativ: Elektronik und autonomes Fahren, Eurostars.

Electric drives and thermal

  • Motor design and control for efficiency or power density
  • Thermal-management systems for battery and drive
  • Integration of drive, battery and thermal under real load

Typical routes: Research Allowance, Eurostars; ZIM once applications reopen.

Vehicle software and integration

  • Energy and range-optimisation algorithms
  • Embedded control developed from the ground up
  • Simulation and digital-twin methods validated against test data

Typical routes: Research Allowance, Eurostars, Horizon Europe Cluster 5. Model-heavy and autonomous driving software is covered under AI and software funding.

What qualifies and what doesn't

Where each programme draws the line

R&D programmes and investment programmes judge the same EV or battery project differently, and each counts different costs.

Usually fundable

  • New cells, packs, drives or BMS developed and tested under technical uncertainty (Research Allowance, KMU-innovativ, Eurostars)
  • Fast-charging, thermal or control methods where no standard solution exists (Research Allowance, Eurostars)
  • Collaborative research and demonstration that matches a call topic on batteries or zero-emission road transport (Horizon Europe Cluster 5)
  • Factories making battery cells or other energy storage components, from €2.5M of capex (EU Innovation Fund)
  • Productive investment in a new or expanded site in an eligible region (GRW)

Usually not fundable

  • Tests that only generate data for type approval, standards or certification, and routine testing against a known specification (Research Allowance)
  • A zero series, production start-up and line tuning (Research Allowance)
  • Depreciation on a test bench or pilot line that also serves production (Research Allowance)
  • Buying fleet vehicles or installing standard charging points, which is not R&D (Research Allowance); road vehicles are excluded outright (GRW)
  • Work or investment started before the application, for BAFA EEW before approval (BAFA EEW, GRW, KfW innovation loans)
Rates and caps

What each type of funding pays

Each instrument pays in a different form. These are the official rates and caps, not a forecast for your project.

Tax credit
25% to 35%

Research Allowance: 25% of eligible R&D costs, 35% for SMEs, on R&D wages, contract research and depreciation of equipment used exclusively for R&D. Projects started from 2026 add a flat 20% on these costs for overheads and other operating costs. From 2026 up to €3M a year, €4.2M for SMEs. Paid out even when the company makes a loss.

R&D grants
Up to 100%

Horizon Europe: 100% for research actions, 70% for innovation actions, 100% for non-profits. EIC Accelerator: 70%, grant below €2.5M. KMU-innovativ: Elektronik und autonomes Fahren pays companies up to 50%, SMEs up to 60%. Eurostars: set by each country's funding body. EXIST: stipends for founders. ZIM: applications currently paused.

Manufacturing and investment funding
By call, region and size

EU Innovation Fund: up to 60% of relevant costs, by default the investment plus ten years of operating costs, minus revenues; manufacturing projects from €2.5M of capex. GRW: ceilings by region and company size, and each Land sets the actual rate. KfW innovation loans: up to €25M per project. EIC Accelerator equity: €1M to €10M. BAFA EEW: 10% to 60% by module and company size.

Rates, caps and thresholds from the official programme rules and the latest calls, checked October 2026. The actual amount depends on eligible or relevant costs, company size, location and the funder's decision.

Your route

Which route fits your company

Location, stage and whether you are scaling manufacturing decide the shortlist before the technology does.

EU company without a German entity

EU-level automotive grants need no German entity: the EIC Accelerator for a single company with a breakthrough technology, Eurostars through your national funding body, Horizon Europe consortia under Cluster 5, and the EU Innovation Fund for factories in the EU, Norway, Iceland or Liechtenstein.

EU company with a German subsidiary or permanent establishment

Adds the Research Allowance. KMU-innovativ, open to SMEs and, in a consortium with them, to mid-sized companies, and ZIM follow their own branch rules, and rates depend on whether you count as an SME or a large company.

Founders at a German university or research institute

EXIST, applied for through the institution, then the routes above once the company exists. More on startup funding.

Scaling battery cell, component or drive manufacturing

EV battery funding at EU level comes from the EU Innovation Fund for factories that meet the latest call's topic and thresholds, open to large companies as much as to SMEs. Electric drives are not among the equipment it names. At a German site, GRW funds investment in eligible regions and KfW innovation loans finance innovation projects, each applied for before you start.

Programmes that fit

Programmes we recommend for EV and battery companies

Most EV and battery clients move through several programmes between first prototype and series production, and the shortlist depends on stage and location.

Open to companies across the EU For companies with a base or site in Germany
Very popularTax credit

Research Allowance

25% of eligible R&D costs, 35% for SMEs on costs after 27 March 2024, credited against tax, retroactive to 2022.

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Grant

KMU-innovativ

Research grants for SMEs and, alongside them, mid-sized companies. The field Elektronik und autonomes Fahren (electronics and autonomous driving) names automotive electronics and energy technology.

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Investment grant

GRW

Investment grants for a new or expanded production site in an eligible German region, applied for before work on the investment starts.

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Grant

ZIM

Grants for SME R&D projects, solo or in cooperation; applications currently paused.

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Loan

KfW innovation loans

Low-interest loans for innovation and digitalisation projects in Germany, applied for through a bank or other financing partner before the project starts.

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Investment grant

BAFA EEW

Grants for energy efficiency, renewable process heat and energy management in your own production at a German site, such as cell or pack manufacturing. Not for R&D; nothing may be ordered before approval.

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Grant

WIPANO

Grants towards an SME's patent filing or a company's work on technical standards, such as charging interfaces, with a branch or permanent establishment in Germany.

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Grant

EXIST

For battery and e-mobility spin-offs from German universities and research institutes. The institution applies on the team's behalf.

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Stationary storage and PV integration, hydrogen and fuel cell vehicles, and autonomous driving software have their own pages: solar and energy funding, cleantech funding and AI and software funding. Production engineering in general is covered under manufacturing funding.

How each programme works in detail is explained in our guides: Horizon Europe, Eurostars, EIC Accelerator, EU Innovation Fund, Research Allowance, KMU-innovativ, ZIM (currently paused), GRW, BAFA EEW, KfW innovation loans, WIPANO and EXIST.

Compare all programmes
Case studies

EV and battery projects we have funded

Practical examples based on real projects, anonymised and with figures rounded.

See all case studies
FAQ

EV and e-mobility funding, answered

Yes, we work with EV, battery and charging technology companies across the EU. Without a German entity, the main routes are the EIC Accelerator and Horizon Europe, open to companies established in an EU member state or an associated country, Eurostars, in which every EU member state takes part, and the EU Innovation Fund for projects located in the EU, Norway, Iceland or Liechtenstein. German programmes need a German company, permanent establishment, branch or site, depending on the programme.

The EIC Accelerator, Eurostars and Horizon Europe Cluster 5, each for a different setup. The EIC Accelerator funds a single startup or SME with a breakthrough technology: a grant below €2.5M for development from TRL 6 to 8, plus optional equity of €1M to €10M; battery materials also fit its 2026 Challenge on energy storage materials. Eurostars funds an SME-led project with partners from at least two countries. Cluster 5 funds consortia on battery and zero-emission road transport topics. Combining them works for different stages or cost items, never for the same costs twice.

Yes, if it is taxable in Germany, typically through a German subsidiary or a permanent establishment. Eligibility follows German tax liability, and the tax authorities treat a foreign company with a German permanent establishment as eligible where Germany has the right to tax. The allowance is 25% of eligible R&D costs, 35% for SMEs, credited against German tax. Contract research counts only if the contractor is managed in the EU, or in an EEA state that provides administrative assistance in tax matters.

It depends on the programme. Under the Research Allowance, building and testing a prototype on the bench or in a test vehicle is R&D while it resolves technical uncertainty, and the R&D phase ends with the test of the prototype. Routine testing against a known specification, tests that only generate data for type approval, standards or certification, and a zero series are not. Horizon Europe innovation actions can fund piloting and demonstration, and the EIC Accelerator grant covers development from TRL 6 to 8.

Yes, if electronics is the core of the project. The field Elektronik und autonomes Fahren funds risky R&D in electronics and names automotive electronics and energy technology among its application areas, so BMS, inverter or charger electronics can fit. SMEs apply alone or lead a consortium; mid-sized companies with up to 1,000 employees and €100M turnover join alongside them. A branch in Germany is required when the grant is paid. Companies receive up to 50%, SMEs up to 60%, starting with a project outline.

Yes, if the factory fits the current call. In the latest call, the clean-tech manufacturing topic covered the production of batteries and other storage for stationary and mobile use, including components and materials that drive their performance or cost, from €2.5M of capex, at up to 60% of relevant costs. Electric drives and charging equipment are not named. The fund pays for the plant, not the R&D before it, and topics change with each call. More on the EU Innovation Fund.

Under the Research Allowance, yes, if it meets three conditions. Depreciation on movable assets such as battery cyclers, dynamometers, climate chambers and measurement equipment counts if they were acquired or produced after 27 March 2024, are used exclusively in the R&D project and are necessary for it. A test bench or pilot line that also serves production fails the exclusivity test. Low-value assets written off immediately do not count, nor do software and licences. Grant programmes apply their own cost rules to equipment.

Yes, several programmes are built for that stage. The Research Allowance is paid out even when a company makes a loss: whatever exceeds your tax bill is refunded once the tax office has set it after the financial year. That suits the long run-up to start of production (SOP), where costs come years before revenue. The EIC Accelerator accepts startups, and even founders who will set up the company before the grant agreement is signed. Founders still at a German university or research institute can start with EXIST.

Yes, and for some programmes it helps. Under the Research Allowance, contract research counts at 70% of the fee for contracts placed after 27 March 2024 (60% before), if the contractor is managed in the EU, or in an EEA state that provides administrative assistance in tax matters. KMU-innovativ funds joint projects in which universities and research institutes can receive up to 100% of their costs. Under the German Eurostars rules, universities and institutes are funded only when a German SME carries a substantial share of the R&D work.

Not through us: our programmes fund charging technology, not charging rollout. Buying and installing standard charging points is not R&D, so the Research Allowance and the R&D grants on this page do not pay for it, and BeFunded does not handle charging infrastructure subsidies. What can qualify is developing charger hardware, power electronics or vehicle-to-grid communication under technical uncertainty, and investment in manufacturing charging components where GRW or KfW innovation loans fit.

For the Research Allowance our fee is purely success-based: 10% of the funding up to €500k per year and 5% above that, due only after payout. For all other programmes the fee is a fixed share plus a success component, both agreed in advance. The first eligibility check is free and comes with no obligation.

Talk to us

Ask us anything

Tell us about your project, wherever in the EU it is based, and we'll assess your case by hand. No prep, no obligation. Prefer to talk?

Not sure you qualify?Fee agreed upfront6–12h of your time