EU Calls for Stronger Support for European Battery Industry to Compete with China
On Thursday, France, Germany, and Sweden urged the incoming European Commission to prioritize securing the future of battery production in Europe and reduce reliance on China to meet the continent's green transition needs.In a paper released ahead of an EU ministers' meeting on Thursday focused on boosting EU competitiveness, the three countries highlighted that European battery companies were facing shared challenges in scaling up while competing on an uneven global playing field.
The EU, they argued, must streamline bureaucracy, speed up approval processes, provide better access to funding and markets for emerging companies, and allocate more EU resources to the battery sector.
Swedish Industry Minister Ebba Busch emphasized before the Brussels meeting that "to succeed in the green transition, we must ensure that the European battery sector thrives and secures a significant market share."
This issue is particularly pressing for Sweden, as Northvolt, Europe's largest electric vehicle battery producer, recently filed for Chapter 11 bankruptcy protection in the United States. The Swedish government has stated it will not bail out Northvolt, which had been viewed as Europe's key player in the electric vehicle battery industry.
Busch noted that a clear signal from Brussels about a strong future for European battery manufacturing could help Northvolt attract new investment from alternative sources.
China currently dominates the global electric vehicle battery market, controlling 85% of battery cell production, according to the International Energy Agency. Busch warned that the EU must avoid repeating its past mistake of becoming overly dependent on an economic rival, as it did with Russian gas.
"The green transition could end up becoming a Chinese transition in Europe... Just look at the solar cell and wind power sectors, much of which has been taken over by third-country investments," said Swedish Industry Minister Ebba Busch.
The incoming European Commission, set to take office on December 1, plans to outline a strategy within its first 100 days on how the EU can remain competitive economically while also achieving its climate goals.
Busch explained that the three countries behind the proposal are advocating for regulatory improvements that would encourage the development of new projects and create conditions that allow companies to scale up.
German State Secretary Bernhard Kluttig added that the EU must also explore alternatives to China for sourcing essential raw materials for batteries.
"There are many options, including Australia, Canada, and even Europe, where we have lithium projects. It’s critical that we focus on these alternative sources for battery materials," he stated.
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