European battery alliance launched in Brussels

The European Commission hosted auto, chemical and engineering executives in Brussels yesterday (11 October) to develop battery manufacturing in the EU to compete with Asian and US manufacturers.

German chemical group BASF, automakers Renault and Daimler and engineering firm Siemens were among those invited to the gathering in Brussels yesterday (11 October).

The initiative, which could lead to an Airbus-style consortium for battery production in Europe, was launched by Maroš Šefčovic, EU Commission Vice-President in charge of the Energy Union.

“The lack of a domestic, European cell manufacturing base jeopardises the position of EU industrial customers because of the security of the supply chain, increased costs due to transportation, time delays, weaker quality control or limitations on the design”, the Commission Vice-President said.

“So, we need to act fast – and collectively – to overcome this competitive disadvantage and capitalise on our leadership in many sectors of the battery value chain, from materials to system integration and recycling.”

Although European carmakers assemble battery packs for electric cars, the region has no significant player in battery cells – the essential building blocks for the batteries that are now mostly made in Asia.

The market is dominated by Japanese firms Panasonic and NEC, Korea’s LG and Samsung and China’s BYD and CATL, as well as US manufacturer Tesla.

German carmaker Volkswagen, Total unit Saft Group which makes batteries, automotive supplier Continental AG and materials technology group Umicore were among those saying they would attend the talks.

The European Commission sees batteries as being “at the heart of the ongoing industrial revolution,” saying “their development and production play a strategic role in the ongoing transition to clean mobility and clean energy systems”.

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