"China's Battery Dependence Grows as Large as Russia's Energy... 'Economic Security Phobia' Threatening the EU"

EU Prepares Report Ahead of Next Month's Summit
Increasing Importance of Batteries for Renewable Energy Storage
China Holds High Market Share in Lithium-Ion Battery and Fuel Cell Sectors

The European Union (EU) has emphasized the need for strong measures, warning that its dependence on Chinese-made batteries could surge. Recently, the EU has launched a large-scale anti-subsidy investigation targeting Chinese electric vehicles, indicating a focus on reducing reliance on China.

[Image source=Reuters Yonhap News]

According to a report obtained and published by major foreign media on the 17th (local time), the EU anticipates that its dependence on Chinese-made batteries will gradually increase, potentially reaching a level around 2030 comparable to the EU's reliance on Russian energy before the Ukraine war. This report is prepared as part of the agenda on European economic security for the EU summit scheduled for the 5th of next month in Granada, Spain.

The report states that the EU expects battery demand to grow significantly within a few years. To achieve the carbon neutrality goal of reducing carbon dioxide emissions to zero by 2050, the EU plans to secure large amounts of renewable energy such as solar and wind power. Due to the nature of renewable energy, which cannot produce or process energy every hour, securing batteries as a means of energy storage becomes crucial.

The report noted, "As a result, demand for lithium-ion batteries, fuel cells, and electrolysis devices is expected to increase by approximately 10 to 30 times within the next few years."

The problem is that while the EU holds an overwhelming position with over 50% global market share in electrolysis device production, it has not established a strong foothold in the lithium-ion battery and fuel cell markets, resulting in high dependence on China. The report warned, "Without strong measures to compensate, Europe's energy ecosystem will rely on China by 2030," adding, "The severity will be similar to the level of energy dependence on Russia before the Ukraine war."

Before the Ukraine war, in 2021, Europe sourced more than 40% of its total gas consumption from Russia. The EU imported 27% of its oil and 46% of its coal from Russia. Due to this dependence, after Russia invaded Ukraine in February last year, the EU faced difficulties from soaring energy prices. This also triggered the European Central Bank (ECB) to implement rapid interest rate hikes.

This report comes as the EU is somewhat distancing itself from China. Recently, the EU announced an anti-subsidy investigation targeting Chinese electric vehicles. This move aims to curb Chinese companies, which have expanded their market share in the European electric vehicle market through low-price strategies, and there are expectations that punitive tariffs could be imposed on Chinese electric vehicles.

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