EU plans battery industry alliance to compete against Asian companies

At present, there is a growing sense of urgency in Europe to strengthen technologies in the field of batteries. Germany has recently expressed its support for the establishment of an EU battery industry alliance to help counter competition from Asian companies.
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The "Europe High-Level Conference on Battery Development and Production" was held in Brussels on the 11th. The "Battery Summit" was initiated by the European Commission. Government representatives from EU member states, battery manufacturers, automakers and raw material suppliers attended the meeting to jointly discuss the development plans of this hot industry. It is reported that participating companies include Volkswagen, BMW, Daimler, Bosch , Siemens Group and chemical group BASF.

The development of the electric vehicle industry has continued to accelerate as German car companies have exposed large-scale diesel vehicle exhaust scandals and the EU has tightened its emissions regulations. In addition to electric vehicles, battery technology may also be widely used in new energy technologies such as wind power and solar power generation. The EU has been actively supporting the development of the battery industry.

In the field of global battery production, Europe has already felt the great competitive pressure from Asia and the United States. Currently the world's three largest battery suppliers are BYD , Panasonic Japan and Ningde times, all Asian companies, including two from China. Other major battery suppliers in the world include Japan NEC, Korea LG and Samsung Electronics, and Tesla in the United States. It is reported that the cost of battery and power transmission currently accounts for about 40% of the total cost of automobiles, and the shortage of European batteries is mainly filled by Japanese and Korean battery manufacturers.

Reuters reported that the European Commission Vice President Marosh Shevovich said that the EU can provide funds to help establish a battery industry alliance. Sevovich said that the development of the battery industry is an indispensable part of the European transition to electric vehicles. The European Union hopes to help the European battery industry achieve full value chain production, including recycling. Sevkovich had previously promised to invest 2.2 billion U.S. dollars to promote battery technology research and development.

EU Energy Agency spokesperson Anna Caesar Itaconan said that the EU regards battery production as a strategic goal and calls for big companies to make decisions on battery investments quickly. European companies are also eager to realize the importance of ensuring adequate battery supply. Ubisoft, Belgium’s materials technology group, said that Europe also needs “aircraft in the battery industry”. Volkswagen had previously called for the establishment of a regional battery supply alliance.

State Secretary of the German Ministry of Economic Affairs and Energy Mahgeny said on the 11th that if Germany wants to remain competitive in the field of electric vehicles, it must produce its own battery packs. Machnisi said that one of the most important technologies in the field of electric vehicles is battery pack technology, and Europe needs to have autonomy in this key technology area. "For the future development of electric vehicles, battery pack production and the establishment of battery factories in Germany and Europe will all be important economic and industrial policy topics." Mahnaysi said, "If Germany wants to maintain its status as a top car manufacturing country, it needs to Independently produce battery packs.” He pointed out that in order to establish battery capacity and promote effective industrial policies, the EU needs to provide assistance from the legislative level.

In order to cope with competition, Germany is actively preparing to build battery production plants, such as the lithium battery plant that TerraE is planning to build in Germany. It is expected to start production at the end of 2019. There are also media reports that the German government has recently expressed its support for the EU to establish a battery industry alliance to help fight competition.

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