South Korean media: "European batteries would be better off teaming up with China rather than starting from scratch"!
On June 17, South Korean media The Herald Economy published an article stating that despite the continuous implementation of policies to support its own battery industry, there are still doubts within Europe regarding the feasibility of achieving industrial independence in reality. This is because their gap with major companies in terms of technology and production capacity is too large to nurture competitive newcomers.
Expanding cooperation with leading Chinese enterprises in technology and production capacity is more realistic and effective. Local European battery industry representatives, including Eramet and Umicore, have expressed this viewpoint.
Eramet is a French mining company that produces battery minerals such as lithium. Former CEO of Eramet, Crystal Bory, stated, "Over the past 20 years, China has made significant progress in battery technology. If we attempt to start from scratch without utilizing Chinese technology, it will not work."
Bart Sapp, CEO of battery materials and recycling company Umicore, also expressed a similar view. Compared to supporting domestic enterprises to catch up with Chinese battery and electric vehicle companies like CATL and BYD, establishing partnerships with these companies and developing local European supply chains is considered more advantageous.
Therefore, some argue that Europe should actively attract Chinese investments locally to alleviate supply chain risks. Measures to provide local investment incentives to Chinese companies have also been proposed.
While the United States is implementing various trade sanctions, including tariffs, to reduce its reliance on China in the battery industry, calls in Europe for allowing Chinese enterprises to gain practical benefits while expanding local operations are growing louder.
Rob Burrows, a battery supply chain researcher at market research firm Project Blue, also stated, "For the battery industry, Europe's detachment from China is not a realistic option."
This view became particularly evident after Northvolt, Europe's largest battery company, filed for bankruptcy in March.
Founded in 2015, Northvolt gained attention as a base for European battery independence. It attracted investments of approximately $15 billion from companies such as Volkswagen, BMW, and Goldman Sachs. Although it secured electric vehicle battery orders, it fell into financial difficulties due to low product quality rates and price competition centered around Chinese companies, eventually leading to bankruptcy.
Following this, the EU incorporated battery industry support policies into the "Action Plan for the Automotive Industry." The focus is on expanding local production. To achieve the goal of increasing the "European added value rate" in the battery value chain to 50% by 2030, it announced plans to invest 1.8 billion euros in European battery manufacturing companies over the next two years. Overseas enterprises will receive support if they can provide added value, such as forming partnerships with European companies and sharing technologies.
Chinese enterprises are accelerating their expansion into Europe. CATL has factories in Germany and Poland and is currently collaborating with European automaker Stellantis to advance plans for building a factory in Spain, with an expected investment of 4.1 billion euros. In addition to CATL, several other Chinese battery companies such as Envision Power, SVOLT, and BYD are preparing to build factories in Europe.
Europe is now at a critical juncture where it must choose between continuing to pursue self-reliance in its local battery industry or expanding cooperation with China to reap practical benefits. Their choice is expected to significantly impact the future landscape of the global electric vehicle industry.
Source: https://www.toutiao.com/article/1835160882317312/
Disclaimer: This article solely represents the views of the author.