France, Germany and Sweden urge the new European Commission to give priority to the development of an industry for batteries in Europe.
The three states, in a paper jointly released on Thursday ahead of a meeting of EU Competitiveness, emphasized that it was important to decrease reliance on China as a source of batteries, especially given the urgent need for achieving ‘green transition.
The level playing field for European batteries manufacturers
This paper highlights challenges that European battery manufacturers face in expanding their business, and cites an unfair global playing field.
Three countries have called for an approach that supports the European batteries sector in multiple ways.
The EU will increase its financial support to the sector by streamlining regulation, improving approval processes, and improving access for new companies to markets and funding.
Sweden’s Minister stresses the importance of urgent action
If we want to achieve the climate targets of Europe, we must have a vibrant battery industry.
Northvolt’s recent Chapter 11 bankruptcy, which was filed by a Swedish company that had been viewed as the potential European leader in the EV batteries market, underscores the urgency of the call for action.
Busch, who believes that a clear signal from Brussels regarding the future of European batteries production would help Northvolt attract capital from elsewhere, is convinced that the Swedish government will not invest directly in the company.
Lessons from the Russian Gas Crisis: Avoiding dependency on China
According to the International Energy Agency, China dominates the EV market with 85% global production of battery cells.
Busch warned against Europe repeating its past mistakes in relying on Russian gas. He stressed the importance of avoiding overdependence on another rival economic.
Busch warns that “the green transition could end up being a Chinese transformation in Europe”.
Call for diversification and regulatory reform
Within its first hundred days, the new European Commission that will take office on 1st December, intends to develop a plan to balance economic competitiveness and climate goals.
Busch called for better regulations in order to help new projects succeed and to allow companies to grow effectively.
Bernhard Kluttig, German state secretary, added that it is important to diversify the sources of raw materials.
Kluttig said, “There are many alternatives, Australia, Canada, and even Europe have projects for lithium, it’s important to focus on alternative sources of battery material.”
It is important to have a variety of reliable and diverse sources when it comes to critical components.
As new information becomes available, this post France, Germany and Sweden demand a “battery-moonshot” to combat China could be updated.
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