Will Europe soon be able to do without China to produce its batteries? In the race for electric vehicles, Asia is now inevitable. However, a study by the federation of European NGOs Transport & Environment (T&E) estimates that Europe could end its dependence on Chinese batteries by 2027, provided it builds a common policy and provides the necessary funding.
Electric battery production projects have multiplied in Europe recently, such as the Verkor gigafactory in Dunkirk or the future Volkswagen factory in Germany. According to T&E, if all the announced projects come to fruition, 100% of the European demand for battery cells could be guaranteed through “made in EU” manufacturing by 2027, the same as 67% of the European demand for cathodes.
In addition, according to the study, Europe could also “drastically” reduce its dependence on China in terms of refining and processing the metals needed for batteries, first and foremost lithium, if all announced projects are successful on time. T&E estimates that Europe could supply more than 50% of its refined lithium demand by 2027. France alone could supply 12% of European demand.
american protectionism
However, these ambitions could be held back by the US protectionist policy. The plan against climate change (“Inflation Reduction Act”) provides a tax credit for the purchase of an electric vehicle, if the latter was built in an American factory with a locally manufactured battery, cars and batteries made in Europe and could result in the relocation of certain projects to the United States.
In dealing with China and the United States, T&E says a common policy is the only possible answer, citing a “sovereignty fund” financed by new European bonds that would invest directly in the companies involved to support these emerging technologies.
The European Commission is currently working on creating a European plan to respond to US subsidies.
Source: BFM TV
