Europe in Battery Fever: Moving Away from Dependency and Toward Independence

France, Germany, and Sweden have urged the future European Commission to promote battery production in Europe and avoid dependence on China for the green transition. In a recently published paper presented ahead of a meeting of EU ministers on competitiveness, the three EU countries emphasized that European battery companies face similar challenges in a global market that is often uneven. To assist the EU in achieving its climate goals, the three countries call for less bureaucracy, an acceleration of approval processes, and better support options for new companies in the sector. Additionally, more EU funding for the battery industry is necessary. Swedish Industry Minister Ebba Busch stressed the urgency: "To successfully implement the green transition, we need to enable the European battery sector to capture a significant market share." The issue is particularly acute for Sweden after Northvolt recently filed for bankruptcy protection in the US. The Swedish government has repeatedly stated it will not invest in Northvolt to save the company, which is considered Europe's great hope for batteries in electric vehicles. A strong signal from Brussels about a secure future for European battery manufacturing could help Northvolt attract new capital. China dominates with 85% of global battery cell production, and the example of the EU's previous dependence on Russian gas should be a lesson, according to Busch. She warned that the green transition could otherwise become a "Chinese transition in Europe," similar to the situation in the solar and wind energy sectors. The new European Commission, which takes office on December 1, plans to demonstrate within the first 100 days how the EU can remain economically competitive while meeting its climate goals. The three countries advocate for improved regulations to support new projects and conditions that allow companies to expand. Additionally, German Secretary of State Bernhard Kluttig spoke in favor of considering alternative sources to China for critical raw materials. "There are many options—Australia, Canada, and even Europe itself. We have lithium projects, so it's important that we focus on these alternative sources for battery materials," he said.