Europe’s way to the battery -powered power – Diepresse.com
Whether lithium or batteries: Europe depends massively. It doesn’t have to stay that way. How the EU can become a battery power.
Eight companies divide the lithium reduction among themselves, together they come to a market share of around 95 percent. Not a single of these companies has its headquarters in the EU, all eight seats in China, the USA, Australia and Chile. With this, Europe’s auto industry, which wants to create the swivel to e-mobility, is completely dependent in a sensitive area. Because lithium is a central component for car batteries. The European dependency goes even further. Because it is not the case that Europe produces its batteries itself. Even if Europe were a significant player in the global lithium market: Battery cells are made to more than 93 percent in China, South Korea and Japan. With its overcapacity, China alone could cover the global need for battery cells almost four times this year.
A new study by the Supply Chain Intelligence Institute Austria (ASCII) is looking for away from this dependency. However, the Thinktank funded by the Ministry of Economic Affairs and the state of Upper Austria advises to raise European battery production at short notice. Firstly, this does not pay off economically because the global overcapacity led to a drop in prices for batteries. Second, industrial stream in Europe is more than twice as expensive as in China. Third, Chinese batteries are technologically advanced. There is nothing more to get in this market for Europe. At least at short notice. In the medium term, Europe has opportunities.
