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cosors

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Mah! If you can afford a Ferrari, you just buy a six-pack and drop them in as required.
"Collaboration between FERRARI-SOCIETA' PER AZIONI ESERCIZIO FABBRICHE AUTOMOBILI E CORSE and LULEA TEKNISKA UNIVERSITET"
 
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freewind

Emerged
https://cdn-ceo-ca.s3.amazonaws.com...e’: How Northvolt tumbled into bankruptcy.pdf

Northvolt is apparently having problems attracting skilled workers to the remote region. Lulea is even further north.
Is there any information on how Talga is tackling the problem?

The anode factory will need fewer skilled workers than a gigafactory, but it's basically the same problem.

When I think of the run-down houses in Vittangi...
 
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cosors

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https://cdn-ceo-ca.s3.amazonaws.com/1jkivla-‘There was so much promise’: How Northvolt tumbled into bankruptcy.pdf

Northvolt is apparently having problems attracting skilled workers to the remote region. Lulea is even further north.
Is there any information on how Talga is tackling the problem?

The anode factory will need fewer skilled workers than a gigafactory, but it's basically the same problem.

When I think of the run-down houses in Vittangi...
Talga is very active in the community of Lulea as other companies, participates in many symposia and actively takes care of the problem. At the same time, the city of Lulea is currently building temporary housing for more than 2000 people near the industrial park just down the road. Lulea is very active in this area.
I have little or no worries about that. Of course it's not easy for the city and Talga. But what would you do if you are loosing your job at NV and see an offer from Talga? Talga also needs far fewer employees.
And NV is fighting and is by no means dead.
And Vittangi can be happy. I think the development is extremely positive for them. Finally some life is coming back to the region.
 
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cosors

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"25.11.2024

Eagerly awaited​

MAN celebrates topping-out ceremony for new battery production facility in Nuremberg​

  • Total investment of around 100 million euros
  • Almost 350 jobs in future technology
  • Start of large-scale battery production for all-electric MAN trucks and buses from April 2025
  • MAN is the first commercial vehicle manufacturer in Germany with its own battery series production
  • MAN CEO Alexander Vlaskamp: ‘Establishing our own battery production is a milestone for MAN and an important sign for Bavaria and Germany as an industrial location.’
1733140102210.png


Bavarian Prime Minister Markus Söder (front) with Frederik Zohm, MAN Board Member for Research & Development, MAN Truck & Bus CEO Alexander Vlaskamp and Michael Kobriger, MAN Board Member for Production & Logistics, as well as Markus Wansch, Chairman of the Works Council of the MAN site in Nuremberg (from left to right) at the topping-out ceremony for the Nuremberg battery production plant.



MAN Truck & Bus is making the transition to electromobility in quick succession: after a construction period of just one year, the company is today celebrating the topping-out ceremony for the new building for the large-scale production of batteries for fully electric trucks and buses at its Nuremberg site. A few weeks after the delivery of the very first MAN eTruck to a customer, the topping-out ceremony is the next highlight for the Munich-based commercial vehicle manufacturer. From April 2025, high-voltage batteries will be manufactured industrially in Nuremberg using state-of-the-art production methods on 17,000square metres. This will create almost 350 new jobs for the future. MAN will be the first commercial vehicle manufacturer to start its own battery series production in Germany. The investment volume for the new building, including investments in logistics, infrastructure, buildings and production facilities, totals around 100 million euros.
Guests at today's topping-out ceremony included the Bavarian Minister President Markus Söder, Nuremberg's Lord Mayor Marcus König, MAN Truck & Bus CEO Alexander Vlaskamp and the Chairman of the Works Council at MAN's Nuremberg site Markus Wansch.
Alexander Vlaskamp: ‘The drives of the future are being created in Nuremberg. Not only are we developing batteries here, but in a few months' time we will also be using the latest technologies to mass-produce them. The topping-out ceremony is an important milestone for our company on the road to the major transformation towards electromobility. And it is also a clear commitment by MAN to Bavaria and Germany as a business location. This was made possible by close collaboration between the company, our works council and Bavarian politicians.’

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Currently, battery packs for MAN's all-electric vehicles are already being produced in small series at the Nuremberg site. With the start of large series production, the small series production area will be gradually converted to the development of the next battery generation and the reconditioning of batteries. From April 2025, the delivered modules will be inserted into battery layers in large series production. These layers will be stacked on top of each other to form the battery pack and then put through their paces.

Over 50 manual and automated assembly stations and seven test benches for quality assurance will be installed on an area of 17,000 square metres. The installation of the first production systems has already begun. From April 2025, up to 50,000 batteries per year will be built in an initial expansion phase. Depending on how the market develops, this capacity is to be expanded to up to 100,000 high-voltage batteries by 2030. At over 35 metres high, the new building is the tallest production building at the site.

Ingo Essel, Head of the MAN site in Nuremberg: ‘The entry into electromobility is a decisive step into the future for our site. We have decades of expertise in the development and production of engines and are now also ideally placed to establish ourselves as a centre of excellence for alternative drive technologies.’

The Free State of Bavaria is also funding further development and research into battery technology with around 30 million euros. Among other things, this has enabled the integration of innovative laser welding cells. Laser welding is the most innovative, efficient and gentle production technology in battery module construction. With a powerful 8 kW disc laser, robot-guided optics and ultra-fine sensors, individual battery cells are electrically connected to each other with the highest precision and quality. Together with the Technical University (TU) of Munich, MAN is researching the further development of this technology, which will be used in a future generation of batteries. "

1733140427775.png

 
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cosors

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"New battery passport solution aims to capitalise on EU Battery Passport requirements​

28 Nov 2024
Battery software firm Electra has introduced a new battery passport solution called EVE-Ai – EAGLE Battery Pass (European Advance Governance and Lifecycle Evaluation), which it said is designed to help companies meet and capitalise on compliance requirements.
It said its passport enables battery manufacturers, fleet operators and industry stakeholders to fulfil mandatory Battery Passport requirements while unlocking valuable battery insights that drive operational efficiency, safety and long-term sustainability.
Starting in 2027, all batteries with capacity over 2kWh entering the European Union market must include a digital record, or battery passport. It will track lifecycle data, from manufacture to end of life.
The regulation will require companies to collect, report and share standardised battery data to improve sustainability, performance and transparency.
Electra said from 2025, companies can adopt these standards “to stay ahead of the regulatory curve” and position themselves as leaders in sustainable practices.
It said the EU Battery Passport requirements divide battery data into static and dynamic fields. While static data covers basic identification and manufacturing details, dynamic data, which must be continuously updated over the battery’s life, presents a more complex challenge.
“By fully managing the critical dynamic data fields of the Battery Passport, EAGLE Battery Pass simplifies compliance and enhances transparency,” it said. “The platform automatically captures and updates battery performance metrics, enabling businesses to meet EU standards and leverage compliance for operational gains.”
Dynamic metrics collected include state of certified energy / health / charge and internal resistance, plus charge-discharge cycles for detailed logging of complete cycles to assess battery wear and support maintenance planning.
On 7 November, the Global Battery Alliance announced results of battery passport pilot schemes. It said 10 consortia, led by the world’s leading battery cell manufacturers representing 80% of the global EV market, mobilised their supply chains to successfully complete the largest pre-competitive effort to establish harmonised battery passports. Over 200 sustainability reports were gathered."
 
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cosors

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"Electric car batteries are more durable than assumed​

If the battery dies, the electric car often becomes a total loss. But the energy storage systems are more durable than stated by the manufacturers, a study shows.
22.11.2024
1733141640914.png


Frankfurt. Even after many kilometres of driving and charging cycles, the performance of electric car batteries remains at a high level. This is the central finding of a recent study by the management consultancy P3, which evaluated data on the real battery aging of more than 7,000 electric vehicles by the battery diagnostics expert Aviloo.
According to the study, the fear of premature battery damage and the associated high financial loss, which is still prevalent among many car customers, is unfounded. The battery is considered a reliable and durable component.
Even for electric cars with high mileages of over 200,000 kilometers, the so-called SoH value (State of Health) remains at a high level on average, as the data from Aviloo show. These show an average SoH value of just under 90 percent even for electric cars with a mileage of between 200,000 and 300,000 kilometers. Only with mileage of well over 100,000 kilometers does the average SoH value gradually fall below the 90 percent mark.
Only in the early days does the Aviloo data show a relatively strong degradation of the batteries on average, because up to a mileage of about 30,000 kilometers, the average SoH value drops to 95 percent.

The study cites the formation of a so-called SEI layer (Solid Electrolyte Interphase) at the anode during the first charging and discharging cycles as the reason for this strong initial degradation. The formation of this layer consumes lithium, which is then available to a lesser extent for electricity storage. After that, however, the SoH value remains relatively stable and decreases only slowly and remains on average at a significantly higher level than a warranty case provides.

Car manufacturers usually provide generous warranties on the batteries. In most cases, a warranty claim would occur if the SoH value drops below 70 to 80 percent within 8 years or 160,000 kilometers."
 
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cosors

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1733143001331.png

1733143037569.png

Swedish battery manufacturer Northvolt, once the poster child of Europe’s green industry and battery independence, has narrowly avoided bankruptcy prompted by a liquidity crunch – despite a remarkable $55 billion order book and $15 billion raised in debt, equity, and subsidies. Now Northvolt’s near-death experience is raising serious concerns about the future of made-in-Europe batteries. For the European Union to successfully maintain a sector critical to the continent’s industrial future, energy transition, and critical infrastructure, it must urgently develop and implement a decisive economic security doctrine which secures Europe’s place as among the leaders in the global battery race.

On Europe’s shores

Northvolt’s aggressive vertical integration may have diverted focus from its core battery cell business; but its struggles reflect deeper structural issues in Europe’s battery industry. Despite announcing €180 billion of investment in the continent’s battery ecosystem, over half of planned gigafactories face delays or even cancellation. Aside from Northvolt, the only other significant EU-headquartered battery manufacturer, Automotive Cells Company, has halted projects, while Norway’s Freyr Battery has shifted investment to the United States to benefit from tax incentives.

Prospects for European production of high-value battery components like cathodes, anodes, electrolytes, and separators are even grimmer. Although demand is rising, the need for components exposes the EU battery industry to severe dependencies on China, which controls 80 per cent of the global components market. Only Umicore in Poland and BASF in Germany and Finland have begun cathode production, while anode production is nowhere to be found in Europe.* Separators and electrolyte investment, meanwhile, comes exclusively from China and South Korea.

The China problem

Overall, several factors are contributing to the bleak outlook for Europe’s battery industry.

First, a declining demand in the EU for electric vehicles (EV) is harming domestic battery producers. Second, China’s battery companies excel in innovation and benefit from manufacturing excellence, outcompeting European rivals. Third, prices for raw materials like lithium, cobalt, manganese, nickel, and graphite are rapidly declining due to global oversupply.

Continual price volatility and local resistance to the opening of lithium mines impedes the business case for European projects. China’s dominance in raw materials also offers its battery-makers cheap and privileged access to the necessary resources: European companies must compete across each supply-chain segment, whereas Chinese state firms can produce raw materials at a loss and thereby bolster battery- and EV-makers further downstream. As a result, Europe is not competing against individual companies – but rather against entire supply chains.

Furthermore, Chinese overcapacity in battery cell production means battery prices in China are now 50 per cent cheaper than elsewhere. Chinese plants can already produce over triple the domestic demand. This overcapacity is an existential threat to Europe’s fledgling battery industry. If these dynamics continue, the business case for made-in-EU batteries will diminish significantly.

Shifting gear

Batteries are at the heart of geoeconomic competition for control and access to strategic industries. Beijing, which is busy tightening controls over its technology exports to leverage dominance in the value chain, has already weaponised batteries and raw materials. Meanwhile, Washington’s strategy is bent on creating China-free supply chains, with EVs in its crosshairs.

But Europe’s current battery strategy remains mute on these geoeconomic dynamics. The EU therefore needs a comprehensive economic security doctrine that specifies which parts of the supply chain struggles against foreign competition and which could be competitive; which parts of the industry may need short-term protection, subsidies, or open trade; and which elements of the supply chain need priority focus due to being at high risk of weaponisation.

Most importantly, each solution laid out in an economic security doctrine should provide mutual support for the other and explain how each entity – whether EU member states or the European Commission – is responsible for each step.

1. Diversification​

In supply chain areas where Europe cannot compete on cost or lacks major industrial players, the EU should focus on finding different partners to lower the risk of reliance on single suppliers.

For example, silicon-based anode production is a promising alternative to graphite anodes, where China has a 97 per cent market share. Researchers and companies in the US and South Korea are leading in their development. If the EU can support its allies in advancing innovation, in turn these partners would support the bloc’s economic security through diversification.

One tool with which the EU could advance such battery partnerships is through Clean Trade and Investment Partnerships, which promise to identify partners with manufacturing, innovation, or the material capabilities the EU lacks. To bring these partnerships to life, the EU will have to provide strong offers, such as co-funding battery research programmes or financial support to ramp-up production. In this way it would support manufacturing of battery components in countries which have lower labour and energy costs, making them a competitive supplier to the EU.

An economic security doctrine which
identifies how European industry could
land amid the victors in the ongoing
‘battery wars’ is the EU’s best chance


2. Made in the EU​

In supply chain areas that are deeply integrated with the EU automotive base, promise significant jobs, and could be weaponised, the EU should support “made-in-EU” measures for battery cells, components, and recycling.
This approach would not exclude foreign companies from production in the bloc – on the contrary, some 90 per cent of battery cell production in Europe is in the hands of Korean companies. Rather, EU leaders should ensure Japanese and Korean greenfield battery investments will continue while simultaneously preventing the continent from becoming an assembly hub.
However, this strategy still needs to ensure the right market conditions on the continent. It first requires the EU’s latest battery regulation, which aims to strengthen sustainability rules for batteries, to include strong CO2 footprint disclosures favouring green and made-in-the-EU production. Second, the EU should consider extending Chinese EV countervailing duties to EV components such as batteries to ensure Chinese EV makers in Europe are incentivised to use local-made batteries. Third, the commission should implement the Foreign Subsidies Regulation which targets foreign battery firms benefitting from EU subsidies.
At the same time, made-in-EU parts of the supply chain require targeted state support to scale-up production. The commission now operates a €3 billion Battery Fund which should prioritise supporting companies with EU-based sourcing and low-carbon supply chains. But a substantial financial support instrument with a single rulebook is needed for the EU to have strategic steer on which parts of the supply chain need its full support.

3. Infant industry

Where EU innovation is competitive and could lead to technological breakthroughs for the battery industry, the bloc should prioritise scaling commercial production and, if necessary, using trade protections such as tariffs until the industry matures.
For example, solid-state batteries – considered the most promising next generation of battery innovation – is an infant industry in which EU players are better positioned to be competitive. France’s Blue Solutions is already selling solid-state batteries for buses, while Germany’s Schaeffler, Spain’s Basquevolt, and the Dutch Lionvolt are also trialling innovations.
To support these players against multibillion-dollar competitors and a Chinese state fund, the EU needs to close the scale-up finance gap by deepening capital markets and nurturing the venture capital scene. EU policymakers should also prevent foreign competitors from using their scale to undercut a promising infant battery industry, meaning short-term trade protections should be in consideration for the single market.

4. Security

As batteries underpin renewable-energy grids, they are becoming central to critical infrastructure and require a more focused security approach. With battery-storage systems also vulnerable to cyberattacks, the EU would be wise to conduct a targeted analysis of the battery-specific risks to Europe’s energy grid, especially where the US-China rivalry or other geopolitical events could have a major impact.
Batteries are already being weaponised. For example, Beijing sanctioned America’s largest drone maker, Skydio, which banned Chinese battery sales to the company – and this is Ukraine’s largest drone supplier. The defence industry must therefore also consider their risk exposure and, where feasible, defence planners should prioritise procuring innovative and resilient battery supplies. A strong stance on defence would also support Europe’s battery supply chain.
Finally, if companies like Northvolt are forced to sell assets, European governments should use investment screening tools to prevent deepening dependencies on strategic rivals. The commission’s FDI screening revision proposal mandates screening investments in “critical technology” sectors, including energy technologies. Increased support for this initiative is essential for the EU to develop a more unified investment landscape.

Battery wars

Batteries are at the heart of geoeconomic competition. China’s economic policies have helped create the market – but in doing so, the country has the market cornered. With other powers vying for control and influence over a technology which is helping define Europe’s industrial future and energy transition, the EU faces some tough decisions. An economic security doctrine which identifies how European industry could land amid the victors in the ongoing ‘battery wars’ is the EU’s best chance at preserving a global balance of industrial power.

The European Council on Foreign Relations does not take collective positions. ECFR publications only represent the views of their individual authors."


*You know the reasons.
 
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cosors

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Battery cell production in Europe​

These are the consequences of creditor protection at Northvolt​

Goldman Sachs will probably have to write off its stake in the Swedish battery manufacturer. Volkswagen is also threatened with burdens. Northvolt wants to restructure itself with new management.

New York, Vienna, Düsseldorf. Investors in the Swedish battery cell manufacturer Northvolt are feeling the effects of the company's crisis. According to a report in the Financial Times, ' private equity funds must Goldman Sachs as the second-largest shareholder, it will completely write off its stake by the end of the year. Volkswagen
as the largest shareholder with a stake of more than 20 percent, the FT also faced high burdens, the FT wrote.
According to its own information, the British business medium was able to inspect Goldman letters to investors. According to this, the funds will probably have to write off almost 900 million dollars on the investment.
Northvolt filed for Chapter 11 creditor protection on Thursday last week. Just one day later, Peter Carlsson, CEO and founder of the Swedish battery cell manufacturer, announced his resignation. The search for a successor is underway.

"For me personally, this is an emotional day," Carlsson said on Friday. The former Tesla manager founded Northvolt about eight years ago. The company was supposed to be the European answer to Tesla's gigafactories as well as the numerous battery cell manufacturers from South Korea and China.

But with the ramp-up of battery cell production at the plant in Skelleftea, Sweden, some serious quality and cost problems became apparent. "In retrospect, we were overambitious in terms of timing," Carlsson said with a view to production targets. First customers such as BMW
then withdrew orders worth billions.

Northvolt has been working on a rescue package for some time​

As a result, Northvolt was forced to apply for creditor protection under US law last Thursday. In addition to a new CEO, the company is looking for other investors. Carlsson will only accompany this process as a member of the supervisory board and advisor.

The restructuring proceedings under Chapter 11 of the US bankruptcy law protect Northvolt from the access of its creditors for a certain period of time, thus facilitating the financial restart. Companies are subject to an insolvency court, but they can continue to do business. The management also normally remains in office.

"The overriding goal is to work with one or more long-term strategic or financial investors," the court documents said. At the same time, the company will have access to 245 million dollars and can thus ensure its survival in the coming weeks.

Of this, around 100 million dollars come in the form of a loan from the truck manufacturer Scania . The VW subsidiary wants to use this to support the production of battery cells for electric vehicles in Skelleftea in northern Sweden. The other 145 million dollars are funds from Northvolt, which have so far been set aside as collateral.

According to court documents, Northvolt only has cash and cash equivalents of 30 million dollars – which is just enough for a week, according to the information. At the same time, the mountain of debt now amounts to 5.8 billion dollars.

» Read also: Northvolt appoints restructuring experts as head of battery plant

The imbalance at Northvolt is symptomatic of the current bumpy transformation of the European automotive industry towards electric mobility. Above all, for Volkswagen , as the largest shareholder, the creditor protection proceedings and Carlsson's resignation are a problem.

Originally, Northvolt was supposed to supply the Volkswagen Group's higher-priced electric cars from European production with battery cells. The cheaper electric cars in Europe, on the other hand, are to be supplied with the unit cells of VW's own factories in Europe, with VW using battery technologies from the Chinese specialist Gotion.

Wolfgang Bernhart, Senior Partner at Roland Berger and long-time automotive expert, expects headwinds for the European battery cell industry. "We assume that only about 600 to 700 gigawatt hours of battery production capacity will be built in Europe by 2030. Capacities of 1500 gigawatt hours were once announced," he told the Handelsblatt.

Chinese companies dominate the business with batteries, the most important components of electric cars. According to the analysis company SNE Research, battery cells from suppliers such as CATL, BYD, Calb, Guoxuan, Eve, Svolt, Sunwoda or Farasis are currently installed in more than half of new electric cars worldwide.

What's more, Chinese companies provide the majority of the four most important basic elements of lithium-ion batteries. Specifically, according to an evaluation by the Japanese Yano Research Institute, Far Eastern companies supplied around 89 percent of the cathodes, 94 percent of the anodes, 85 percent of the electrolytes and 87 percent of the separators for lithium-ion batteries in 2023.

No carmaker can escape this market power. Volkswagen, BMW and Mercedes-Benz source battery cells from Chinese industry leader CATL
and other companies from Asia. European suppliers, on the other hand, are having a hard time.

According to Roland Berger expert Bernhart, Western manufacturers of battery cells are lagging behind their Asian competitors in terms of technology and operations. It is advisable for the industry to look ahead realistically now: "European manufacturers should become more open to cooperation with Asian companies," said Bernhart.

Cell assembly at Northvolt in Heide to start in 2027​

The investment bank UBS

According to the report, Chinese manufacturers have cost advantages of around 40 percent over European companies. The cost difference per vehicle would therefore be around 3000 euros, according to a study by UBS .

👉
Northvolt's German subsidiary, on the other hand, is not part of the proceedings. According to its own statements, it will be financed independently of the parent company. A battery cell factory is to be built at the Heide site in Schleswig-Holstein. Federal Minister of Economics Robert Habeck (Alliance 90/The Greens) is "cautiously optimistic" despite the current developments.

The starting signal for the construction of the 4.5 billion euro project was given at the end of March by Chancellor Olaf Scholz (SPD) and Federal Minister of Economics Robert Habeck (Greens), among others .
1733143899585.png



"The European battery cell industry is in a challenging situation overall," said Christofer Haux, head of Germany. According to Haux, however, the construction work would continue. According to the new schedule, cell assembly is scheduled to start there in the second half of 2027. Originally, this was planned for the end of 2026."
 
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Semmel

Top 20

Chinese Ministry of Commerce puts squeeze on #graphite exports starting today "it is decided to strengthen export controls on relevant dual-use items to USA...for #graphite stricter end-user and end-use reviews will be implemented."
There are not many companies outside Asia capable of producing graphite battery anode. @Talga_Ltd $TLG $TLG.ax

While bad for the battery industry as a whole, this is actually good for Talga. Hope this lights some MORE fire under the offtake negotiations.
 
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cosors

👀
View attachment 73677
View attachment 73678
Swedish battery manufacturer Northvolt, once the poster child of Europe’s green industry and battery independence, has narrowly avoided bankruptcy prompted by a liquidity crunch – despite a remarkable $55 billion order book and $15 billion raised in debt, equity, and subsidies. Now Northvolt’s near-death experience is raising serious concerns about the future of made-in-Europe batteries. For the European Union to successfully maintain a sector critical to the continent’s industrial future, energy transition, and critical infrastructure, it must urgently develop and implement a decisive economic security doctrine which secures Europe’s place as among the leaders in the global battery race.

On Europe’s shores

Northvolt’s aggressive vertical integration may have diverted focus from its core battery cell business; but its struggles reflect deeper structural issues in Europe’s battery industry. Despite announcing €180 billion of investment in the continent’s battery ecosystem, over half of planned gigafactories face delays or even cancellation. Aside from Northvolt, the only other significant EU-headquartered battery manufacturer, Automotive Cells Company, has halted projects, while Norway’s Freyr Battery has shifted investment to the United States to benefit from tax incentives.

Prospects for European production of high-value battery components like cathodes, anodes, electrolytes, and separators are even grimmer. Although demand is rising, the need for components exposes the EU battery industry to severe dependencies on China, which controls 80 per cent of the global components market. Only Umicore in Poland and BASF in Germany and Finland have begun cathode production, while anode production is nowhere to be found in Europe.* Separators and electrolyte investment, meanwhile, comes exclusively from China and South Korea.

The China problem

Overall, several factors are contributing to the bleak outlook for Europe’s battery industry.

First, a declining demand in the EU for electric vehicles (EV) is harming domestic battery producers. Second, China’s battery companies excel in innovation and benefit from manufacturing excellence, outcompeting European rivals. Third, prices for raw materials like lithium, cobalt, manganese, nickel, and graphite are rapidly declining due to global oversupply.

Continual price volatility and local resistance to the opening of lithium mines impedes the business case for European projects. China’s dominance in raw materials also offers its battery-makers cheap and privileged access to the necessary resources: European companies must compete across each supply-chain segment, whereas Chinese state firms can produce raw materials at a loss and thereby bolster battery- and EV-makers further downstream. As a result, Europe is not competing against individual companies – but rather against entire supply chains.

Furthermore, Chinese overcapacity in battery cell production means battery prices in China are now 50 per cent cheaper than elsewhere. Chinese plants can already produce over triple the domestic demand. This overcapacity is an existential threat to Europe’s fledgling battery industry. If these dynamics continue, the business case for made-in-EU batteries will diminish significantly.

Shifting gear

Batteries are at the heart of geoeconomic competition for control and access to strategic industries. Beijing, which is busy tightening controls over its technology exports to leverage dominance in the value chain, has already weaponised batteries and raw materials. Meanwhile, Washington’s strategy is bent on creating China-free supply chains, with EVs in its crosshairs.

But Europe’s current battery strategy remains mute on these geoeconomic dynamics. The EU therefore needs a comprehensive economic security doctrine that specifies which parts of the supply chain struggles against foreign competition and which could be competitive; which parts of the industry may need short-term protection, subsidies, or open trade; and which elements of the supply chain need priority focus due to being at high risk of weaponisation.

Most importantly, each solution laid out in an economic security doctrine should provide mutual support for the other and explain how each entity – whether EU member states or the European Commission – is responsible for each step.

1. Diversification​

In supply chain areas where Europe cannot compete on cost or lacks major industrial players, the EU should focus on finding different partners to lower the risk of reliance on single suppliers.

For example, silicon-based anode production is a promising alternative to graphite anodes, where China has a 97 per cent market share. Researchers and companies in the US and South Korea are leading in their development. If the EU can support its allies in advancing innovation, in turn these partners would support the bloc’s economic security through diversification.

One tool with which the EU could advance such battery partnerships is through Clean Trade and Investment Partnerships, which promise to identify partners with manufacturing, innovation, or the material capabilities the EU lacks. To bring these partnerships to life, the EU will have to provide strong offers, such as co-funding battery research programmes or financial support to ramp-up production. In this way it would support manufacturing of battery components in countries which have lower labour and energy costs, making them a competitive supplier to the EU.

An economic security doctrine which
identifies how European industry could
land amid the victors in the ongoing
‘battery wars’ is the EU’s best chance


2. Made in the EU​

In supply chain areas that are deeply integrated with the EU automotive base, promise significant jobs, and could be weaponised, the EU should support “made-in-EU” measures for battery cells, components, and recycling.
This approach would not exclude foreign companies from production in the bloc – on the contrary, some 90 per cent of battery cell production in Europe is in the hands of Korean companies. Rather, EU leaders should ensure Japanese and Korean greenfield battery investments will continue while simultaneously preventing the continent from becoming an assembly hub.
However, this strategy still needs to ensure the right market conditions on the continent. It first requires the EU’s latest battery regulation, which aims to strengthen sustainability rules for batteries, to include strong CO2 footprint disclosures favouring green and made-in-the-EU production. Second, the EU should consider extending Chinese EV countervailing duties to EV components such as batteries to ensure Chinese EV makers in Europe are incentivised to use local-made batteries. Third, the commission should implement the Foreign Subsidies Regulation which targets foreign battery firms benefitting from EU subsidies.
At the same time, made-in-EU parts of the supply chain require targeted state support to scale-up production. The commission now operates a €3 billion Battery Fund which should prioritise supporting companies with EU-based sourcing and low-carbon supply chains. But a substantial financial support instrument with a single rulebook is needed for the EU to have strategic steer on which parts of the supply chain need its full support.

3. Infant industry

Where EU innovation is competitive and could lead to technological breakthroughs for the battery industry, the bloc should prioritise scaling commercial production and, if necessary, using trade protections such as tariffs until the industry matures.
For example, solid-state batteries – considered the most promising next generation of battery innovation – is an infant industry in which EU players are better positioned to be competitive. France’s Blue Solutions is already selling solid-state batteries for buses, while Germany’s Schaeffler, Spain’s Basquevolt, and the Dutch Lionvolt are also trialling innovations.
To support these players against multibillion-dollar competitors and a Chinese state fund, the EU needs to close the scale-up finance gap by deepening capital markets and nurturing the venture capital scene. EU policymakers should also prevent foreign competitors from using their scale to undercut a promising infant battery industry, meaning short-term trade protections should be in consideration for the single market.

4. Security

As batteries underpin renewable-energy grids, they are becoming central to critical infrastructure and require a more focused security approach. With battery-storage systems also vulnerable to cyberattacks, the EU would be wise to conduct a targeted analysis of the battery-specific risks to Europe’s energy grid, especially where the US-China rivalry or other geopolitical events could have a major impact.
Batteries are already being weaponised. For example, Beijing sanctioned America’s largest drone maker, Skydio, which banned Chinese battery sales to the company – and this is Ukraine’s largest drone supplier. The defence industry must therefore also consider their risk exposure and, where feasible, defence planners should prioritise procuring innovative and resilient battery supplies. A strong stance on defence would also support Europe’s battery supply chain.
Finally, if companies like Northvolt are forced to sell assets, European governments should use investment screening tools to prevent deepening dependencies on strategic rivals. The commission’s FDI screening revision proposal mandates screening investments in “critical technology” sectors, including energy technologies. Increased support for this initiative is essential for the EU to develop a more unified investment landscape.

Battery wars

Batteries are at the heart of geoeconomic competition. China’s economic policies have helped create the market – but in doing so, the country has the market cornered. With other powers vying for control and influence over a technology which is helping define Europe’s industrial future and energy transition, the EU faces some tough decisions. An economic security doctrine which identifies how European industry could land amid the victors in the ongoing ‘battery wars’ is the EU’s best chance at preserving a global balance of industrial power.

The European Council on Foreign Relations does not take collective positions. ECFR publications only represent the views of their individual authors."


*You know the reasons.
I don't know if you guys have heard, but Freyr is out. But at least there is one less anode competitor (Elkem).
"...while Norway’s Freyr Battery has shifted investment to the United States to benefit from tax incentives."

"The NYSE-listed firm has taken the drastic decision to minimise all further investments in its flagship Giga Arctic project in Mo I Rana, Norway, as well as other European projects, and only focus on scaling in the US for now, where it is developing a gigafactory project in Georgia. Freyr has an ambitious 200GWh 2030 production target across its gigafactory projects in Europe and the US."

One can only hope for all the companies that are changing sides because of the IRA that, on the one hand, the money will be enough for all of them ($36 trillion in debt) and that their decision is the right one. Many leave everything behind and go to the USA in the hope of getting a piece of the action. I remain sceptical.
The debt is so high that the US is having problems servicing its bonds for the first time. And soon they will have a president who will drive up inflation again (tariffs) and lower interest rates (less tax revenue to service the bonds). I remain sceptical and am watching from the side lines to see if the plan works.
'Everyone' is clinging to the IRA mast, to the US, like rats on a sinking boat, in the hope that everything will turn out well.
 
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Semmel

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Europe is doing a very bad job in the transition to EV. Domestic car companies are dying. (VW, BMW, Stellantis, etc), Battery companies are leaving (Freyr) or dying (Northvolt). Raw materials companies are red taped to oblivion (us, others). I thought we europeans would do better. Sad to see.
 
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cosors

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Europe is doing a very bad job in the transition to EV. Domestic car companies are dying. (VW, BMW, Stellantis, etc), Battery companies are leaving (Freyr) or dying (Northvolt). Raw materials companies are red taped to oblivion (us, others). I thought we europeans would do better. Sad to see.
Freyr has bought a solar cell manufacturer in the USA. They seem to be shifting their focus.
 
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cosors

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Europe is doing a very bad job in the transition to EV. Domestic car companies are dying. (VW, BMW, Stellantis, etc), Battery companies are leaving (Freyr) or dying (Northvolt). Raw materials companies are red taped to oblivion (us, others). I thought we europeans would do better. Sad to see.
Wait until Europe fights. That hasn't started yet.
And there has been a new EU Parliament for a few days now.

___
I'm glad that the stupid enemy J Borell is finally gone.
 
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ACinEur

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