Is Europe achieving self-sufficiency in lithium batteries & EVs?

While North America is making strides, with substantial investments aimed at achieving self-sufficiency in lithium batteries and EVs, Europe has yet to reach a comparable level. Despite this, Europe is gaining momentum, with several prototype and full-scale battery plants underway.

What is the future of battery manufacturing in Europe?

As global demand for sustainable energy solutions grows, Europe’s battery manufacturing industry is undergoing unprecedented development. From the automotive industry to home energy storage systems, the demand for high-performance batteries continues to rise, driving technological advancements and fostering a host of innovative companies.

How are European lithium battery manufacturers navigating a complex landscape?

Overall, European lithium battery manufacturers are navigating a complex landscape, striving to localize production, ensure sustainability, and mitigate geopolitical risks to foster a resilient and competitive battery industry.

Where are Europe's battery plants located?

Despite this, Europe is gaining momentum, with several prototype and full-scale battery plants underway. Volkswagen Group’s PowerCo is establishing gigafactories in Germany, Spain, and Canada, while Northvolt is supplying Volvo and expanding its presence in Sweden and Belgium.

Why are Europe's battery production expectations so high?

In Europe, the region experienced a 62% increase between July 2022 and 2023. Furthermore, diesel car sales decreased by 9%, according to data from the European Automobile Manufacturers’ Association. Another reason for high expectations regarding battery factories is the clear dominance of China.

What is the demand for lithium-ion batteries in 2024?

That is more than 2.5 times annual demand for lithium-ion batteries in 2024, according to BNEF. While demand across all sectors saw year-on-year growth, the EV market – the biggest demand driver for batteries – grew more slowly than in recent years.