European suppliers of batteries for electric vehicles are calling on the EU to introduce mandatory rules on the local component in a future package of measures to support the automotive industry, arguing that such measures are necessary to reduce dependence on China, provide jobs and stabilize the fragile battery value chain in Europe, Automotive News reports.
In a letter to European Commission President Ursula von der Leyen, companies including ACC, Verkor, Albemarle and the industry association Eurobat warn that Europe risks losing an industry with an annual volume of 250 billion euros in favor of Asian competitors. They call the battery sector a strategic pillar of economic sustainability and energy security, noting that Chinese and South Korean companies produce 90% of Europe's batteries. Recent European projects such as Northvolt have failed or been scaled back, and several gigafactory construction plans have been put on hold.
Suppliers propose to apply local content requirements in government tenders, national incentives for electric vehicles, trade agreements, fleet regulations, and vehicle co₂ emission standards. Transport & Environment experts emphasize that the rules should distinguish between "friendly" raw materials at the top level and the production of batteries and accumulators at the bottom level in the EU, which should be mandatory. They stress that all major global blocs are already using rules on the local component, leaving the EU "one of the last to resist," and warn that without urgent action, Europe risks losing up to 350,000 jobs and undermining the transition to electric vehicles.
