Europe’s Rising Role in the Global Battery Industry
Automotive OEMs like Volkswagen and Tesla are getting involved in battery cell production. The rising demand for lithium-ion batteries in electric vehicles has put pressure on OEMs, leading to their ventures into the battery market. Companies like ACC (Mercedes, Stellantis, and Total), Cellforce (Porsche and CUSTOMCELLS), and Volkswagen’s spin-off, PowerCo, are already announcing their ambitions to produce cells.
European start-ups are utilizing the available funding options to support local battery production. Notable pioneers include Northvolt, with other start-ups in the planning or early construction stages, such as Britishvolt, Freyr, Italvolt, and Verkor.
Considering labor costs, Korean cell manufacturers favored Eastern European countries due to lower wages. However, regional start-ups are also emerging in Serbia (ElevenEs) and Poland (‘impact’). Germany remains a favorite location for Gigafactories, despite higher labor costs, due to the presence of major OEMs. Central Europe, France, and the United Kingdom are also experiencing advancements in cell manufacturing.
The future will determine the most successful concepts and regions in the battery market. Europe, however, has a fair chance of becoming a significant player in global cell manufacturing. The competition is on, and the race is intensifying.
Source: Umlaut, CiCenergiGUNE