Will Europe's battery industry catch up with China & US?

In 2019, France and Germany agreed to pump billions of euros into a plan to boost Europe’s battery industry and catch up with China and the US. Five years later, that effort is running out of steam. As electric-vehicle sales slow, companies including Volkswagen, Stellantis and Mercedes-Benz are scaling back or refocusing battery projects.

Why is China launching a battery trade deal with the EU?

This strategic move is tailored to ensure seamless battery trade relations between China and the EU. It's pivotal to note China's overwhelming presence in the battery production landscape, holding a staggering 77% of the global market share.

Could China replace lithium with recycled lithium in EV batteries?

China, a major producer and processor of key battery raw materials like lithium and graphite, could replace lithium obtained by mining with recycled lithium in EV batteries from 2059 onward, according to a study by the University of Münster in Germany. By comparison, Europe and the US are expected to reach that milestone only after 2070.

What is China's power battery market share?

Furthermore, China's power battery market share in Europe has seen a meteoric rise-from 14.9% in 2020 to an impressive 34% in 2023. The EU's transition towards more stringent battery regulations is a testament to its unwavering commitment to sustainability, responsible sourcing, and championing a circular economy in the battery sector.

What if Europe doesn't establish its own EV battery value-chain?

The stakes are high: if the region fails to establish its own EV battery value-chain as cells replace the combustion engine, large parts of the automotive industry – which makes up about 7 per cent of Europe’s economy – will follow solar panels, consumer electronics and chips in shifting to Asia. But Europe looks increasingly unable to keep up.

Can Europe break China's dominance in electric vehicles?

(Bloomberg) -- Europe’s bid to build a homegrown battery industry to break China’s dominance in electric vehicles is failing. The most high-profile setback yet came with the Chapter 11 bankruptcy of Northvolt AB, a Swedish startup whose backers include Volkswagen AG and BMW AG.