Europe's Battery Race Heats Up: EC Invests €2.7 Billion, Germany Eyes Tesla Gigafactory
The European Commission has shown significant commitment to battery technology, allocating €110 million in 2019 and €2.7 billion from 2019 to 2020. This investment aims to foster innovation and potential breakthrough projects in the battery sector. Meanwhile, Tesla is reportedly eyeing a major European investment, with Germany as a front-runner. The country's Coal Commission is exploring the possibility of transforming former coal and nuclear sites into gigafactories, aiming to replace lost jobs and revenue with green-battery production.
The EC vice president, Maroš Šefčovič, has called for a pan-European, public-private partnership to attract battery producers and investors. This initiative aligns with the establishment of the European Battery Alliance (EBA) in October 2017, aiming to encourage investment in a European-built next-generation battery industry. Germany, with its existing electrical grid and transportation infrastructure, is well-positioned for this transformation. The Automotive Cells Company (ACC) plans to start battery production at its Gigafactory in Kaiserslautern around 2025.
Energy storage is set to play a crucial role in the transition to renewables. Europe's largest battery, a 50MWh project in Jarelund, Germany, is slated to come online in June. This project, a joint venture between Eneco and Mitsubishi Corporation, is connected to regional wind farms for power storage and grid stabilization. The potential market for batteries in Europe is estimated at up to €250 billion a year from 2025, potentially requiring between 10 and 20 gigafactories to meet EU demand alone.
The EC's substantial investment and the Coal Commission's strategic planning indicate a concerted effort to position Europe at the forefront of battery technology. With Tesla's reported interest and the ACC's Gigafactory plans, Germany is poised to become a key player in this burgeoning industry. As the transition to renewables continues, energy storage solutions like the Jarelund battery will be vital, potentially creating a significant market for Europe.
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