Three European automotive batteries manufacturers requested on Thursday, September 4, several billion euros in direct aid of the European Union to support their sector, “threatened” by US and China competition and a possible softening of electrification objectives in Europe.
Before a crucial meeting in the European Commission, the three manufacturers, Powerco, Verkor and ACC, based in Germany and France, said in a rare common press statement: “Without immediate and specific support for local production, Europe runs the risk of losing its strategic autonomy in a key technology of the 21st century.”
“In a context of geopolitical tensions and economic changes, the president of the European Commission will meet the interested parties on September 12 to discuss the future of the European automotive industry,” they say.
“In the heart of the transition to a decarbon transport”
“Although the United States and China deploy mass subsidies to support their local production, European manufacturers are likely to be expelled before they even reach maturity,” said the press release, remembering that today 99% of the batteries are manufactured by non -European actors.
The batteries “are in the heart of the transition to a decarbon transport and the future of the European car and constitute a problem of sovereignty,” adds the text.
The European battery alliance, which brings together more than 700 manufacturers from the entire value chain, advocates a support mechanism financed by the EU. It would be one billion euros for starting, 1.8 billion euros for the first three years of production, as well as additional funds between 2028 and 2030 to guarantee long -term competitiveness.
“A geopolitical question”
These aid are essential to “reach 90 GWh of batteries produced in Europe by 2027, the equivalent of 1.2 million electric vehicles,” said the press release.
The cost of inaction would be much higher than that of support, “warns the manufacturers, for fear of an” relocation of an annual market of 250 billion euros for the benefit of Asian imports “and a” strategic weakening of the entire automotive industry. “It is not just an industrial question, it is a geopolitical question,” they insist.
Powerco, founded in 2022 by the Volkswagen Group, currently built two battery cell factories in Salzgitter in Germany and Valence in Spain. Verkor, founded in 2020, plans a gigaconser in Dunkerque. ACC (Actomotive Cells Company), a co-company founded in 2020 by Stellantis, Mercedes-Benz and Totalgies, inaugurated their first Giga-Use in Billy-Berclau/Doubrin in northern France.
Source: BFM TV
