As Europe is decarbonising its economy, it is facing a monumental challenge to rebuild the fossil-based system into a carbon free one. Batteries and the materials that go into making them are central to the effort to clean up cars, trucks and buses as well as to expand renewable energy networks. This report “An industrial blueprint for batteries in Europe” by Transport and Environment analyses the progress, as well as challenges associated with onshoring this supply chain, providing an industrial footprint for governments to build a local, resilient and sustainable battery supply chain.
Key findings are:
● Europe can become self-sufficient in battery cells by 2026, and manufacture most of its demand for key components (cathodes) and materials such as lithium by 2030. But over half of gigafactory plans in Europe remain at risk of either being delayed or cancelled, down from close to two-thirds a year ago.
● Onshoring the battery supply chain offers significant climate benefits: 37% reduction in carbon emission when using the EU grid, or 133 Mt of CO2 by 2030 compared to China. When relying on predominantly renewable energy sources, the reductions double to 62%.
● However, many of the announced projects remain uncertain and, given the nascent nature of this industry in Europe, would not happen without stronger government action.
● The industrial policy blueprint should include maintaining the investment certainty, providing EU-level investment support and stronger made in EU provisions for best-in-class projects.
Access the complete report here
