The EU Battery Union wants to get rid of its dependence on Asia. Is the battery industry strong enough?

Gasgoo.com, October 19: Germany and Poland have joined forces in the field of batteries to try to establish a 'European Battery AllianceAs a traditional European industry with advantages, the automobile industry is facing strong challenges from companies in the United States and East Asia. At present, the German Ministry of Economic Affairs is facing greater pressure on the development of the electric vehicle industry, especially in battery processing. Recently, executives of German auto giants have voiced their voices, calling on Germany and Europe to get rid of their dependence on Asia in the field of batteries and to establish Europe’s own battery processing capabilities. According to foreign media reports, as Audi unabashedly declared in its TV commercials, it and German automakers had not developed electric cars before, but in the end they readily accepted the electrification trend. Now that the European auto industry has gradually gotten rid of its dependence on internal combustion engines with hindsight, the so-called battery alliance (batteryAlliance) of the European Union is commendable. The alliance aims to deal with a key issue faced by European automakers: most of the batteries necessary for the development of electric vehicles are made in my country. However, the problem is that Europe started too late in the race to develop electric vehicles. The automotive industry, employing 13 million people, is the backbone of the European economy. Most of the advantages of the European automotive industry lie in its expertise in engines and power systems, and today’s electrification trend, especially in foreign countries where battery processing and innovation centers are thousands of miles away, is threatening what the European automotive industry has always maintained. Competitive advantages. According to Bloomberg data, about 80% of the world's existing and planned batteries are in Asia. Although Japan and South Korea are the early leaders in this category, my country’s battery output currently accounts for 69%, the United States accounts for 15%, and Europe’s battery output accounts for less than 4%. my country’s quasi-monopoly position in the battery sector may weaken Europe’s ability to compete with Chinese automakers. In theory, our country may restrict battery supply in the future. Asian automakers have signed agreements to supply raw materials such as lithium and cobalt. In addition, when Asian automakers are racing to reduce battery size and shorten charging time, Europe’s lack of local industries hinders its technological competition in the next stage. Battery factories require huge investments, but they are processing low-return commercial products. For the EU, the solar industry may be able to give it a little warning. With the help of generous subsidies and loans, Chinese companies processed two-thirds of the world's solar panels between 2010 and 2015, causing many European competitors to go bankrupt. In the field of batteries, the European Commission has not proposed a top-down, state-led response method, which is correct. One year after announcing the battery initiative, the European Union announced a specific package plan this week aimed at promoting exchanges and cooperation, encouraging alliances, and making better use of existing funds. The EU has made it clear that in accordance with EU state aid regulations, the government can provide financial support for projects that develop newer or better battery technologies, provided that these projects require at least two member states to participate and promise to share some technologies and knowledge. At the same time, billions of euros, including supplies from the EU Structural Fund and the European Investment Bank, are ready to jointly provide funds for large-scale processing plants. However, these measures may still be too late. Asian competitors with both scale and expertise are building battery production in Europe. South Korea’s LG Chem, Samsung SDI, and my country’s CATL have established battery plants in Poland, Hungary, and Germany, respectively. Automakers such as BMW and Volkswagen have already processed these batteries. The merchant signed a large contract. Therefore, to maximize the chance of success, Europe should take further measures. The transition to electric vehicle technology in my country first occurred in the field of public transportation. The EU should also advocate the transition to electrification of buses, taxis and truck fleets to stimulate battery demand and develop charging infrastructure. In addition, the EU needs to train more battery engineers. However, if the EU can do a good job of coordinated action in the field of battery technology, it may have a positive impact. The attempt by Maros Sefcovic, the Vice-President of the European Union and the European Commission, is correct. At present, if Europe lags further behind, it may struggle to catch up with Asia in the next few decades. In addition, it will put countless jobs at risk.