The European commission to boost battery manufacturing in Europe

The European Commission hosted auto, chemical and engineering executives in Brussels on 11th October 2017, to discuss the possibility to develop battery manufacturing in the EU to compete with Asian and US manufacturers.

German chemical group BASF, automakers Renault and Daimler and engineering firm Siemens were among those invited to the gathering.

The initiative, which could lead to an Airbus-style consortium for battery production in Europe, was launched by Maroš Šefčovic, EU Commission Vice-President in charge of the Energy Union.

“The lack of a domestic, European cell manufacturing base jeopardises the position of EU industrial customers because of the security of the supply chain, increased costs due to transportation, time delays, weaker quality control or limitations on the design”, the Commission Vice-President said.

“So, we need to act fast – and collectively – to overcome this competitive disadvantage and capitalise on our leadership in many sectors of the battery value chain, from materials to system integration and recycling.”

Although European carmakers assemble battery packs for electric cars, the region has no significant player in battery cells – the essential building blocks for the batteries that are now mostly made in Asia.

The market is dominated by Japanese firms Panasonic and NEC, Korea’s LG and Samsung and China’s BYD and CATL, as well as US manufacturer Tesla.

German carmaker Volkswagen, Total unit Saft Group which makes batteries, automotive supplier Continental AG and materials technology group Umicore were among those saying they would attend the talks.

The European Commission sees batteries as being “at the heart of the ongoing industrial revolution,” saying “their development and production play a strategic role in the ongoing transition to clean mobility and clean energy systems”.

“The work starts immediately,” Šefčovic said, announcing the launch of a number of working groups on issues ranging from supply chain, investment financing, trade issues, and R&D. “Industrial participants will take the lead, express interest to participate in or even be rapporteur for each work strand,” the Commission Vice-President said.

A strategic plan is expected to be adopted “early next year” that “could take the form of a comprehensive roadmap for an EU Battery Alliance, to be presented in February 2018,” Šefčovic said.

The EU could support the initiative with up to €2.2 billion (£1.95bn), according to the Financial Times, which first reported on the meeting last week.

The global market for batteries is forecast to reach €250 billion annually by 2025, Šefčovic said, citing industry figures presented to him by industry representatives.

Europe needs an “Airbus for batteries”, said Egbert Lox, vice president of Umicore, which makes materials for the car industry and rechargeable batteries. “This is a good initiative at the right time,” said a spokesman for Volkswagen, whose brand chief called for the industry to create a regional battery supplier last month.


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