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Europe could end reliance on Chinese Li-ion battery cells by 2027 – forecast
(Transport and Environment, 24 Jan 2023) But pledged investments can still be lost to America unless the EU ramps up incentives for the EV supply chain.
The EU can end its reliance on China for lithium-ion battery cells by 2027, Transport & Environment (T&E) has forecast. Europe is on track to produce enough Li-ion cells by then to fully meet domestic demand for electric vehicles and energy storage, according to the new analysis of battery-makers’ announcements. However, the green group said the EU needs a policy to counter US subsidies or risk losing investments in the EV supply chain.
China’s dominance of battery components can also be cut. Two-thirds of Europe’s demand for cathodes – which contain critical raw materials – can be produced domestically by 2027, the report also finds. Existing and planned cathode production projects include Umicore in Poland, Northvolt in Sweden, and BASF in Germany. But companies could still move projects planned for Europe to the US, tempted by the tax benefits and other subsidies provided by the Inflation Reduction Act for localising battery supply chains in America.
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