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Batteries, widely used in the transport and energy sectors, are central to the global energy system. They will be key to the EU's clean energy transition, industrial future and strategic autonomy. Boosting the industrial base for battery production is therefoBriefing - Powering the EU's future: Strengthening the battery industry - 24-01-2025
Batteries, widely used in the transport and energy sectors, are central to the global energy system. They will be key to the EU's clean energy transition, industrial future and strategic autonomy. Boosting the industrial base for battery production is therefore a key task for the EU. While the EU battery sector enjoys strong support for its research and development activities, it also faces significant challenges such as dependencies on third countries and high energy and labour costs. Developing battery recycling or implementing more sustainable value chains could help address some of these challenges. However, significant threats, such as competition from countries with lower environmental standards, may hinder progress and require strategic action. Projections around battery manufacturing in the EU remain highly uncertain. Many reports claim that the EU is on track to meet its future battery needs, yet also highlight significant risks that could prevent this from happening. Factors such as rising energy and labour costs, incentives offered by third countries, slower-than-expected market developments, or difficult access to critical raw materials, could undermine the sector's competitiveness. Mastering the complexities of battery manufacturing technologies remains another major challenge. Delays or cancellations of gigafactory projects have already been announced across Europe. The recent collapse of Northvolt, once hailed as Europe's flagship home-grown battery manufacturer, has raised serious concerns about the future of batteries 'made in Europe'. The EU has long recognised batteries as one of its strategic technological sectors. To make its battery supply chains secure, resilient and sustainable, the EU uses three approaches. First, it seeks to inject strategic impetus into the sector, using its convening power to improve cooperation among stakeholders. Second, it is working on a comprehensive regulatory framework. Third, it provides the sector with funding. The development of the battery sector provides an instructive case study for shaping an effective EU industrial policy. Source : © European Union, 2025 - EP Read more
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