France, Germany, and Sweden are urging the incoming European Commission to prioritize the development of a robust European battery industry.
In a joint paper released ahead of an EU competitiveness meeting on Thursday, the three member states emphasized the need to reduce reliance on China for batteries, particularly given the urgency of the green transition.
Leveling the playing field for European battery makers
The paper highlights the challenges faced by European battery companies in scaling up their operations, citing an uneven global playing field.
The three countries advocate for a multi-pronged approach to support the European battery sector.
This includes streamlining regulations, expediting approval processes, improving access to funding and markets for emerging companies, and increasing EU financial support for the industry.
Sweden’s minister underscores the urgency
“If we are to succeed with the green transition we need to get the European battery sector flying and taking a proper share of the market,” stated Swedish Industry Minister Ebba Busch, emphasizing the critical role of a thriving battery industry in achieving Europe’s climate goals.
The urgency of this call to action is underscored by the recent Chapter 11 bankruptcy filing of Northvolt, a Swedish battery maker seen as a potential European champion in the EV battery market.
While the Swedish government has ruled out direct investment to rescue Northvolt, Busch believes a strong signal from Brussels about the future of European battery production could help the company attract new capital from other sources.
Avoiding dependence on China: lessons from the Russian gas crisis
China currently dominates the EV battery market, controlling 85% of global battery cell production, according to the International Energy Agency.
Busch cautioned against repeating the mistakes of Europe’s past reliance on Russian gas, emphasizing the need to avoid over-dependence on another economic rival.
“The green transition might end up becoming a Chinese transition in Europe… Just look at solar cell or wind power sector, a lot of that has been taken over by third-country investment,” Busch warned.
A call for regulatory reform and diversification
The new European Commission, set to take office on December 1st, plans to outline a strategy for balancing economic competitiveness with climate targets within its first 100 days.
Busch outlined the three countries’ call for improved regulations to support new projects and enable companies to scale up effectively.
German State Secretary Bernhard Kluttig added that diversifying sources of key raw materials is also crucial.
“There are many options, Australia, Canada and even Europe, we have lithium projects, so it is also important that we focus on these alternative sources for battery materials,” Kluttig stated.
This highlights the importance of securing diverse and reliable sources for critical battery components.
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