Video summary

EDIP Webinar - Industrial Reinforcement Action (IRA)

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Key takeaways

Business

Executive summary

The European Commission’s DG DEFIS presented Industrial Reinforcement Actions (IRAs) under EDIP as a way to expand defence production capacity, address industrial bottlenecks, improve security of supply, and shorten production lead times. The calls build on the rapid-production approach tested under ASAP, extending support beyond ammunition and missiles to components, platforms, and end products.

A separate Ukraine Support Instrument (USI) is intended to support EU–Ukraine industrial cooperation and production capacity in Ukraine.

Call structure and funding

The webinar described five topics across four calls.

EDIP programme (EU and Norway)

  • Energetic components: Explosives, propellants, propulsion systems, warheads, fuzes, and filling plants, linked to listed ammunition and missile products.
  • Key electronic components: Guidance and propulsion electronics, RF/laser modules, cameras, avionics, and other electronics linked to drones, missiles, C4ISR, and related systems.
  • Defence platforms and end products: A broader, more vertical topic covering production capabilities such as machining, assembly, and integration, and products including vehicles, aircraft, naval platforms, radar, and satellite payloads.

Ukraine Support Instrument (EU and Ukraine)

  • Missiles, ammunition, and bombs.
  • Unmanned and counter-unmanned systems, including electronic-warfare-resilient drones and supporting systems.

Each proposal must connect at least one listed production capacity to at least one listed defence product. Applicants may cover multiple capacities or products, but proposals cannot span multiple call topics; applicants must select the relevant topic.

Key metrics and timelines

  • Overall EDIP budget: €1.5 billion—€1.2 billion for the programme and €300 million for the Ukraine Support Instrument.
  • IRA allocations cited:
    • EDIP programme topics: approximately €440 million in total—over €166 million for energetic components, over €122 million for key electronic components, and over €150 million for platforms and end products.
    • Ukraine Support Instrument topics: approximately €260 million, with an additional €6.5 million in external assigned revenue expected.
  • Maximum EU contribution per project:
    • EDIP: €30 million for energetic components, €20 million for key electronic components, and €30 million for platforms and end products.
    • Ukraine Support Instrument: €30 million for missiles, ammunition, and bombs; €10 million for unmanned and counter-unmanned systems.
  • Funding rates:
    • EDIP: Up to 35% of eligible costs, potentially rising to 50% through two 7.5-percentage-point bonuses, subject to the stated preconditions.
    • Ukraine Support Instrument: Up to 100% of eligible costs.
  • Submission dates stated in the webinar: 16 June at 5 p.m. for the first, urgent EDIP call; October of that year for the Ukraine missiles, ammunition, and bombs call; and 16 February of the following year for the other two topics. The year was not stated for the June date. Decisions for the first call were expected in Q4 2026.
  • Grant timing and payments: Grant signature was estimated at about six months after the submission deadline. Pre-financing may be up to 35% of the grant. Interim payments are agreed during grant preparation, typically on reporting periods of 12–18 months. Payments before the final payment are capped at 90% of the grant, with the remaining 10% paid at the end.

Frameworks and application playbook

Industrial-reinforcement activities

Proposals must include at least one of the five core activity types:

  1. Optimize defence-product production capacity.
  2. Establish cross-border industrial partnerships.
  3. Create or make reserve manufacturing capacity available.
  4. Industrialize or commercialize defence products developed with prior EU funding.
  5. Test defence products.

Physical and cyber protection may be included as an optional supporting activity.

Capacity-expansion case

Demonstrate the targeted product’s criticality, why additional capacity is urgent, the supply-chain risks being addressed, and the expected effect on availability, lead time, and output.

Execution plan

Specify milestones and KPIs. A project is considered complete when the supported capacity is installed, commissioned, and operational, with completion assessed against agreed deliverables and KPIs. There are no standard KPI values; proposals are assessed in light of their specific products and capacities.

Component-origin test

Component costs originating outside the relevant eligible area must remain below 35% under one of two calculation methods. Applicants must select and support a method, provide a procurement strategy with component origins, quantities, and cost breakdowns, explain compliance procedures and contractual arrangements, and set out monitoring milestones.

Raw materials, as defined by the referenced Critical Raw Materials Act, are excluded from the calculations.

Design authority

Applicants must show full technical and legal control over the design of the product whose capacity is being increased, including the ability to replace restricted non-eligible components.

A special timing provision applies to missiles and ammunition: the required authority may be obtained by the end of the action, subject to the stated commitment and deadline.

Submission process

  1. Register the organization in the EU Participant Registry and obtain its PIC.
  2. Use the relevant call page and latest templates on the Funding & Tenders Portal.
  3. Complete the structured application and annexes.
  4. Submit the Part B proposal as an encrypted archive.

Submit well before the deadline. Portal eligibility warnings are not a substitute for checking the call conditions.

Security handling

Some proposal information may be treated as classified by national authorities. Applicants should follow the call’s security instructions and contact the Commission early if sections need to be classified. The Commission handles other sensitive information on a need-to-know basis.

Eligibility and evaluation

  • EDIP applicants must be legal entities established in the EU or Norway. USI proposals must involve a Ukrainian entity and comply with the relevant EU/Ukraine establishment and control rules.
  • Single applicants and consortia may apply; consortia may include up to 15 legal entities. A consortium is specifically required for the activity involving industrialization or commercialization of products from prior EU-funded actions. The webinar also noted a minimum of three independent entities from two Member States for that case.
  • Cross-border cooperation is not limited to consortium membership: subcontractors, suppliers, technology providers, and other supply-chain participants may be considered. Subcontracting above 30% requires a detailed justification.
  • EDIP’s stated bonus preconditions include qualifying as a relevant European armament structure or having a majority of SME/mid-cap beneficiaries. The SME/mid-cap majority is assessed by number of legal entities, not budget share. The webinar said the relevant armament structure had not yet been established.
  • The separate bonus for crisis-relevant products was not available for the first energetic-components call because the necessary implementing act had not yet been adopted.
  • The six award criteria cover alignment with the call objectives; supply availability and security; cross-border cooperation; expected results; production lead time, capacity, reserve capacity, and workforce skills; and implementation quality and efficiency.
  • Scores run from 0 to 5 in 0.5 increments. No product category is prioritized in advance, and the Commission does not provide individual pre-submission proposal advice.

Cost and implementation guidance

  • Eligible costs may include necessary construction or acquisition of buildings and infrastructure directly linked to the project. Land acquisition, purchasing raw materials or products/components, company acquisitions, routine maintenance, and costs for already fully funded actions are not eligible.
  • Dual-use production may be proposed, but funded costs must be linked to the defence-product capacity in scope.
  • Costs incurred from 5 March 2024 may be eligible if they are necessary for the action, covered by the grant implementation period, and the project is not complete before grant signature.
  • Funding may be combined with other EU or national support if there is no double financing of the same eligible costs and applicable cumulation rules are respected.
  • The Commission makes grants to the coordinator, which distributes funds according to the grant agreement. Cost evidence must be retained because projects may be subject to ex-post audit.
  • The webinar advised applicants to use the call documents, tutorials, and functional mailbox for detailed questions. Proposals are evaluated after the deadline rather than as they arrive.

Presenters and sources

Presenters and contributors: François Arbault; Laurent (surname unclear in the captions); Renaud; Christina; Nuria; Georgios; Janine; Sandro; and Alexandra. The captions also name Marcus once in a handoff during the evaluation section.

Sources cited: European Commission DG DEFIS; the EDIP regulation and work programme; call documents and templates on the EU Funding & Tenders Portal; and Commission guidance and tutorials.

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