The European Battery Alliance is progressing very fast despite the pandemic, according to European Commission Vice-President Maroš Šefčovič, European Investment Bank (EIB) Vice-President Andrew McDowell and Northvolt CEO Peter Carlsson, who spoke at a press briefing on Thursday 27 August.
According to Mr McDowell, since the launch of the Alliance, the EU’s strategy has evolved in two years: it is no longer a question of Europe trying to catch up with China, but now of becoming a leader in the sector. According to him, the EIB has invested as much in the battery sector in one year as it did in the last ten years (see EUROPE 12538/24).
Mr Šefčovič drove home the message: aggregate EU investment in the battery sector is almost double that of China over the last two years. He estimated that Europe will be able to meet 80% of domestic demand for electric batteries by 2024.
Enthusiastic, but more moderate, Peter Carlsson acknowledged that there was still much to do to catch up with Europe’s Chinese competitor. Thus, the main challenge for the businessman is to scale up production and to recruit enough engineers. However, Europe is sorely lacking in skilled labour in this field, he said. On the other hand, the issue of access to raw materials poses difficulties, and lithium recycling is a promising way to address this, he said.
Asked by EUROPE about the asymmetry in the electric vehicle market between Western and Northern Europe, where the electric car market has taken off, and Central and Eastern Europe, where it remains sluggish, Mr McDowell explained that EIB loans would finance up to 75% of the total investment cost, instead of the 50% normally in force. Objective: to accelerate the energy transition of these countries and the conversion of national vehicle fleets.
Regarding China, speakers all reiterated that European competitiveness will be based not on cost but on sustainability, all hoping that the EU will be able to impose its standards at international level.
The Commission intends to give a boost to the electric car sector by presenting, next week, a strategy to ensure safe access to crucial raw materials and, in October, a regulatory framework on batteries (see EUROPE 12443/7). The European institution is also expected to present a strategy for intelligent mobility.
The Commission gave its green light in December 2019 to the French Important Project of Common European Interest (IPCEI) (see EUROPE 12386/23). It is expected to give its approval to a second German project soon, said Vice-President Šefčovič. (Original version in French by Pascal Hansens)