Europe Races to Build Gigafactories, but Can It Compete with China?
Europe is ramping up its efforts to produce lithium batteries for electric vehicles (EVs), with several gigafactories planned across the continent. However, industry experts have raised concerns about Europe's ability to manage these projects and its dependence on China for battery sourcing.
Between January and May 2023, China accounted for approximately 70% of global lithium battery production. This dominance has sparked diverse opinions and a push for Europe to secure its own supply chain. France has already secured a 10 billion euro investment for the construction of four gigafactories.
Volkswagen is leading the charge with plans for a gigafactory in Slovakia, along with additional European sites in Germany, Spain, and France. Other companies like Northvolt and CATL have also planned gigafactories in Germany, Sweden, and Poland. Buck Consultants International anticipates the installation of 250 plants over the next ten years.
Germany is currently the best-performing country in Europe for lithium battery production, with a capacity of 151 GWh. However, experts like Peter Willemsen of Gotion Global doubt Italy and Germany's ability to successfully manage gigafactories. Lars Carlstrom of Italvolt warns that Europe lacks much of its supply chain and is experiencing a serious decline in battery production. Gert Jan Van der Have of Dekra also comments that Europe lacks skills for setting up battery production lines.
Despite the challenges, Europe is committed to increasing its lithium battery production. The Automotive Cells Company (ACC) has announced a 4.4 billion euros debt raise for three gigafactories in France, Germany, and Italy. With strategic investments and a focus on developing local skills, Europe aims to reduce its dependence on China and secure its position in the EV market.
