Europe could become independent of battery imports

By 2030, 90 percent of the batteries required in the European Union (EU) are to be produced there. According to a study by the Fraunhofer Institute for Systems and Innovation Research (ISI), achieving this target set by the EU is likely to be difficult, but not impossible.

Steffen Link and his team have used probability-based modeling to investigate how the demand for batteries in the EU will increase in the coming years and how production will develop. The study has been published in the journal Nature Energy.

According to the projections of the Karlsruhe-based Fraunhofer researchers, demand is expected to be more than one terawatt hour per year. Covering this with our production capacities will be difficult, the team writes.

The modeling showed that domestic production would definitely be sufficient for 50 to 60 percent of demand. However, the target of 90 percent was only achieved in around half of the modeled scenarios.

Production capacity must be expanded

If Europe wants to reduce its dependence on imports from Asia, the study states that those involved must accelerate the expansion of production capacities and establish supply chains.

“Our new study comes at a time when Europe is moving towards climate neutrality and striving for resilient, sustainable battery value chains with domestic production and global competitiveness,” says Steffen Link, scientist at Fraunhofer ISI and lead author of the study. To achieve this, politics is also required: A reliable industrial policy is needed to support Europe's competitiveness and ensure a secure supply of batteries. This also includes ensuring continued demand for electric vehicles by maintaining the current carbon dioxide fleet limits for cars and trucks.

The study warns that Europe could become even more dependent on imports if production capacities for batteries for cars and grid storage cannot be expanded. Europe could then become less economically competitive and decarbonization could be delayed.

(wpl)