European battery manufacturing emits considerably less compared to Chinese imports.
Battery manufacturing is a crucial aspect of the industry, with China taking the lead in this realm. The European Union (EU) aims to reduce its reliance on Chinese imports and focus more on its own production. A report suggests this is a sensible choice, both economically and environmentally.
By producing batteries in Europe instead of relying on Chinese imports, the EU can significantly decrease CO2 emissions associated with electric vehicle production, states a study by the organization Transport and Environment (T&E). The study finds that total European battery manufacturing would release approximately 37% less carbon dioxide compared to current imports.
A major factor contributing to this potential reduction in CO2 emissions is the "relatively high proportion" of renewable energy sources in Europe. As the EU aims to phase out oil, gas, and coal, battery manufacturers in Europe could potentially emit 60% less carbon dioxide compared to current imports.
T&E's research indicates that European firms have the technical capacity to manufacture batteries in the region. However, Sebastian Bock, T&E's Managing Director in Germany, cautions that about half of the planned EU production might shift to the US or China due to a lack of funding. He suggests the European Investment Bank (EIB) and the EU Battery Fund must improve their ability to support investments in European gigafactories.
Metal Production in the EU
Extracting the necessary metals within the EU would also lower CO2 emissions, T&E's analysis suggests. Transportation routes would be shorter compared to nickel imported from Indonesia and lithium processed in China from Australia. The organization recommends increased extraction and recycling of these metals in Europe.
The EU's objective is to meet at least 10% of its demand for strategically vital resources like nickel and lithium from its domestic production by 2030. Processing facilities should reach at least 40% capacity for this purpose. EU officials are also exploring closer partnerships with Norway, which possesses substantial deposits of raw materials in the North Sea.
Northvolt, a Swedish manufacturer, is constructing a battery factory in Schleswig-Holstein, set to be operational in 2026. The government is providing 902 million euros in support. Northvolt claims it will create the "world's most eco-friendly batteries" in Heide, using wind energy from the area to power production.
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The European Union (EU) could significantly reduce CO2 emissions associated with electric vehicle production by manufacturing batteries locally, as suggested by a report from Transport and Environment (T&E). This change could potentially lower emissions by 60% compared to current imports due to Europe's high renewable energy usage.
Furthermore, the EU aims to meet at least 10% of its demand for nickel and lithium from domestic production by 2030, recognizing the importance of reducing reliance on imports from countries like China and Indonesia with high CO2 emissions in metal production.
Source: www.ntv.de
