Brussels: France, Germany, and Sweden have urged the incoming European Commission to prioritize the development of the EU battery sector, aiming to reduce dependency on China and strengthen Europe’s green transition. In a joint paper released ahead of Thursday’s EU ministers’ meeting on competitiveness, the three nations emphasized the need for coordinated action to ensure Europe can compete globally in battery production.
The paper highlighted the challenges European battery companies face, such as scaling up production in an uneven global market. The ministers called for reducing bureaucratic hurdles, accelerating approval processes, enhancing funding opportunities, and allocating more EU resources to the battery industry.
“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,” said Swedish Industry Minister Ebba Busch during a press briefing in Brussels.
Urgency Heightened by Northvolt’s Struggles
The issue has become critical for Sweden after Northvolt, a major European player in electric vehicle battery production, filed for Chapter 11 bankruptcy protection in the United States last week. The Swedish government has ruled out bailing out the company, instead emphasizing the need for broader EU support to stabilize the sector.
Busch suggested that a strong signal from Brussels about the future of European battery production could attract alternative investment for Northvolt and similar companies.
Lessons from Reliance on Russian Gas
China currently dominates the global battery cell production market, holding an 85% share, according to data from the International Energy Agency. Busch warned that Europe risks repeating its dependency on Russian gas if it relies too heavily on Chinese battery suppliers.
“The green transition might end up becoming a Chinese transition in Europe,” Busch cautioned. “Just look at the solar cell or wind power sectors—much of that has been overtaken by third-country investments.”
A Call for Strategic Policy Changes
The new European Commission, set to begin on December 1, plans to outline its approach to balancing economic competitiveness with climate goals within its first 100 days. Busch and her counterparts are urging the Commission to create better regulatory conditions for battery production projects and support companies in scaling operations.
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German State Secretary Berhard Kluttig emphasized the importance of diversifying raw material sources for battery production, pointing to potential supplies from Australia, Canada, and Europe itself. “We have lithium projects in Europe. It’s vital that we focus on these alternative sources for battery materials,” Kluttig stated.
A Test for European Competitiveness
The push for battery sector autonomy underscores Europe’s broader challenge of achieving climate goals without compromising its economic independence. The next steps taken by the EU could determine whether the bloc secures a competitive edge in the global battery industry or falls behind economic rivals.
