Europe’s reliance on Asian battery producers has increased significantly in the past year. A new analysis published by the consultancy Deloitte on Monday revealed that 77 percent of battery cells for electric vehicles are manufactured in Asia, with Europe’s share remaining stagnant at 13 percent. Furthermore, 98 percent of Europe’s production capacity is overseen by Asian companies.
Looking ahead, the demand for EV batteries is expected to grow even further. Europe intends to produce nearly 28 million electric vehicles by 2030, which will require batteries with a capacity of 1,950 gigawatt-hours. Deloitte warns that European battery companies could lose 10.5 billion euros in profits over the next four years if they fail to manufacture these batteries themselves. This lost value creation could escalate to between 100 and 150 billion euros by 2030.
Harald Proff, head of the global automotive sector at Deloitte, warned that European manufacturers must adapt to remain competitive and reduce market pressures. He called on both the industry and political leaders to collaboratively address the dependence on China. Proff noted that the majority of battery value creation occurs during material sourcing and refinement, as well as cell production, but stated that European companies are currently not adequately positioned in these crucial areas.
