Europe to Account for One-Third of Global Battery Production by 2030

(Source: Alex Kraus / Bloomberg)

[Asia Economy Reporter Yujin Cho] The European Union (EU) is projected to account for one-third of the world's electric vehicle battery production by 2030. Governments across Europe are racing to secure battery competitiveness, with Germany allocating a budget of 2.6 billion euros to attract new battery factories.

On the 4th (local time), market research firm BloombergNEF (BNEF) forecasted that the EU's share of global electric vehicle battery production will grow from 7% last year to 31% by 2030. Based on surging demand, European governments and private companies are increasing investments in battery supply chains, which are key to the next-generation electric vehicle industry. Maros Sefcovic, Vice President of the European Commission, stated, "We are creating a completely new industrial ecosystem in Europe. Investments in the (battery) sector are pouring in."

The EU has been moving with plans to lead this market for several years. Since declaring the goal of 'carbon neutrality' by 2050 in 2019, European governments and companies have invested at least 60 billion euros in batteries. This amount is about three times the investment in China and covers the entire supply chain from securing raw materials to battery design, manufacturing, and recycling.

This year's targets are even more aggressive. The investment in the battery sector by European governments this year is expected to increase tenfold from the previous year to at least 6.1 billion euros. Competition to attract new battery factories among countries is fierce. Germany, known for its diesel engine industry, aims to invest up to 2.6 billion euros in the battery industry, including attracting battery factories from Tesla, LG Energy Solution, and ACC.

Last year, sales of electric vehicles and plug-in hybrid vehicles in Europe more than doubled from the previous year to 1.3 million units, surpassing China for the first time. With global automakers such as Volkswagen, Ford, and Volvo actively launching electric vehicles, sales are expected to increase to 1.9 million units this year.

Jean-Pierre Corniou, a former Renault executive and consultant at SIA Partners, said, "Every European country wants to attract new battery factory establishments," and predicted that about 27 battery factories capable of producing at least 500 GW of battery cells per hour will be built in Europe within the next 10 years.

This content was produced with the assistance of AI translation services.