The EU's innovation body, the European Innovation Council (EIC), opened the EIC STEP Scale Up Defence funding call on 1 July 2026, through which defence companies in EU and associated countries can receive up to 30 million euros in direct investment.
The EIC states that this is the first time any EU funding programme has invested direct equity in defence companies. The funding is aimed at companies in EU member states, countries within the European Economic Area (EEA) that are associated with Horizon Europe, as well as Ukraine.
According to the EIC, the funding is intended to accelerate the scaling up of industrial capacity within areas including air and missile defence, drones and counter-drone measures, and other critical defence technologies.
The EIC states that the council plans to co-finance larger funding rounds that typically amount to 50 to 150 million euros or more. The total round size is expected to be at least three to five times the amount requested from the EIC.
The funding call was announced on 17 June 2026. The EIC STEP Scale Up Defence programme is administered by the European Innovation Council and SMEs Executive Agency.