EU calls on companies to ‘dive’ into electric vehicle battery production

The European Union will gather next week leaders from automotive, chemical, and engineering companies to discuss battery production in Europe that would compete with Asian and American manufacturers.

The meeting will be held next Wednesday in Brussels, and among the invitees are representatives from the German chemical group BASF, car manufacturers Renault and Daimler, and engineering company Siemens.

European Commission Vice President Maroš Šefčovič stated that the EU could financially support the establishment of a consortium in this sector.

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– Our ambitions are to create real production in the EU, with a complete chain, including recycling, Šefčovič said in an electronic message to Reuters on Wednesday.

– Support for the introduction of batteries into use is simply imperative if we are serious about transitioning to e-mobility, said the Vice President of the EC.

The arrival in Brussels has also been announced by the German car manufacturer Volkswagen, Total’s battery subsidiary Saft Group, automotive parts supplier Continental AG, and materials manufacturer Umicore.

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Europe needs an “Airbus in the battery segment,” agreed with Šefčovič Egbert Lox, Vice President of Umicore, a manufacturer of materials for the automotive industry and batteries, reminding that aircraft manufacturers joined forces in the 1970s to become competitive with American Boeing.

– This is a good initiative at the right time, said a Volkswagen spokesperson, whose brand leader last month called on the industry to establish a regional battery supplier.

European car manufacturers want to accelerate the transition to zero harmful emissions for electric vehicles, considering the stricter regulations at the EU level in achieving the set climate protection goals.

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Although European car manufacturers assemble battery packs for electric vehicles, Europe is not a significant player in the production of battery cells, key components of batteries that are now mostly produced in Asia.

If electric vehicle sales increase, as many car manufacturers expect, the development of European cell production capacities could cost as much as $30 billion, analysts at Bernstein Research note in a report.

Demand for electric vehicles is still weak due to limited charging infrastructure and high vehicle purchase costs. This could change depending on the pace of battery price declines. In 2016 alone, prices fell by 18 percent, Reuters notes.