Becoming the world’s second largest battery producer

Abstract

Transport accounts for around a quarter of the EU’s greenhouse gas emissions. If the EU is to achieve climate neutrality, it will need to reduce its transport-related emissions by 90 % by 2050. Among other measures, meeting this goal will require a massive uptake of zero and low-emission vehicles: 13 million cars by 20251, 30 million by 20302, and potentially a ban on sales of new combustion engine vehicles from 20353. In this context, the Commission has designated battery development and production as a strategic imperative for Europe. Investing in battery production will support the EU’s efforts to achieve a clean energy transition, including by allowing intermittent renewable energy to be stored for later use. Advances in battery technology and production will be a key contributor to the competitiveness of the EU’s automotive sector4. Investments in the EU’s battery value chain will also address Europe’s current strategic dependence on foreign batteries.