The European Union may fall short in its plans to secure a prominent position in global battery production, warned the European Court of Auditors (ECA). The plan was outlined by the European Commission, and it could be thwarted by limited access to raw materials, rising costs, and strong competition, the auditors concluded.
More favorable production conditions could compel manufacturers to relocate their operations to other countries, including the U.S., which offers ‘huge incentives’ for the production of minerals and batteries, the statement notes.
The EU heavily relies on imports of raw materials from countries with which it has not established free trade agreements, with 87 percent of lithium coming from Australia and 68 percent of cobalt from the Democratic Republic of Congo.
– The EU must not end up in a dependent position regarding batteries, as it has with natural gas – said the main author of the report, Annemie Turtelboom.
The auditors also warn that the Commission lacks oversight of subsidies in the battery production sector, which currently amount to around eight billion euros, ECA stated. If domestic battery production grows slower than forecasted, the EU may be forced to import, given that a ban on the sale of new internal combustion engine vehicles will come into effect in 2035.
A significant portion of imports would likely come from China, which currently accounts for 76 percent of global production capacity. An alternative solution would be to postpone the ban, notes the dpa agency.
