EU might independently dominate battery manufacturing, reveals research.
Manufacturing batteries is a significant part of the industry, and China currently dominates this sector. For a while, the European Union (EU) has aimed to break away from reliance on Chinese imports and instead focus on its domestic production. A recent study suggests that this is not only a smart economic decision but also a wise choice environmentally.
If the EU were to produce its own batteries rather than import them from China, it could considerably lower CO2 emissions in the production of electric vehicles, a study by Transport and Environment (T&E) suggests. The entire battery production within Europe would cause approximately 37% fewer carbon dioxide emissions than the current imports.
A substantial amount of energy is necessary for manufacturing battery cells. The primary reason for potential CO2 reductions, as indicated by the study, is "the relatively high percentage" of renewable energy sources in Europe. Once oil, gas, and coal are completely phased out, European battery manufacturers could potentially reduce their carbon dioxide emissions by over 60% compared to current imports.
European companies have the necessary technical skills to manufacture batteries in the EU, but T&E's Managing Director in Germany, Sebastian Bock, cautions that around half of the planned EU production could shift to the US or China without proper financing. The European Investment Bank (EIB) and the EU Battery Fund need to step up their efforts to support investments in European megafactories to avoid this.
Mining Metals in the EU
To further reduce CO2 emissions, extracting the necessary metals within the EU would also be beneficial, according to the study. Transporting the metals from Indonesia for nickel and China for lithium would be shorter, cutting down on the total emissions. T&E advocated for increased extraction and recycling of these metals in Europe.
The EU's goal is to source at least ten percent of its demand for crucial raw materials like nickel and lithium from its own production by 2030. Processing capacities should then be at least 40%. The EU is also looking to strengthen ties with Norway, which has significant deposits of raw materials in the North Sea.
The Swedish firm Northvolt is constructing a battery factory in Schleswig-Holstein, with plans for it to start operations in 2026 - supported by 902 million euros from the federal and state governments. Northvolt claims it will produce some of the "world's most environmentally friendly batteries" in Heide, Dithmarschen, with production powered by locally-sourced renewable energy.
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The EU's push towards electromobility could significantly benefit from increasing battery manufacturing within its borders. As stated in a Transport and Environment (T&E) study, producing batteries in Europe instead of importing them from China could reduce CO2 emissions by up to 37%. Moreover, with China currently dominating battery manufacturing, electrifying its fleet of electric cars with locally produced batteries could further contribute to reducing carbon emissions.
Source: www.ntv.de
