The EU wants to produce their own batteries for electric cars

9 July 2019

Sweden could become the European leader in the manufacturing of batteries for electric vehicles

The European Union (EU) begins to act according to the Chinese method to create batteries for electric cars the next generation. Thus, the EU does not intend to take any more of the former situation in which Chinese manufacturers of batteries for electric cars enjoy the widest benefits and credits of Beijing, and European producers still had to Fund this global problem only through its own funds on research and development.

So for the past few months, government officials of the European Union headed by the Vice-President of the European Commission Maros Sefcovic together with manufacturers, development banks and major investors has taken a number of measures which will allow to send more than €100 billion ($113 billion) on the development of technology of lithium-ion batteries for future electric vehicles.

Germany and France insist on such actions because of fears that China will overtake them in the field of new technologies in the automotive industry. As in the automotive industry, the EU is busy 13.8 million workers, which is 6.1% of the total number of jobs in the EU, the authorities want to ensure the placing on the market of electric vehicles and batteries of his European and not imported.

Sefcovic said in an interview with Bloomberg: "We are committed to overcoming our technological backwardness and pessimism in relation to the fact that this battle would be initially lost to Europe."

Development programs contribute to some of the leading market for the electric trends, ranging from the fundamental decisions of EU countries to curb greenhouse gas emissions and fight climate change. EU members are increasingly focused on reducing pollution from diesel engines and alarmed from the very beginning that the Chinese companies use in the field of environmentally friendly technologies.

The President of France Emmanuel macron in February stated that: "it can not be satisfied with the situation when 10% of the batteries for our (French ed.) electric vehicles are manufactured in Asia."

Electric wins
The EU program on the development of batteries starts to run in the direction of reorient Europe on the path of reconquest of the market share for battery from China. BloombergNEF according to forecasts, by 2025 the European company, which currently there is no major local manufacturer of rechargeable batteries, they will compete with US in the capacity of the market. Measures that will stimulate investment in the development and production of batteries include:
• The leaders of the European electromobility as France and Germany intend to invest billions of euros in the production of its own batteries. Sefcovic said that the European Commission (EC) might be able to accept the offer of state assistance as a special project by the end of October. Both countries also seek to obtain additional support from the governments of Spain, Sweden and Poland.

Sketches future of the Swedish giavarini Northvolt Ett company NorthVolt AB the Internet is rife options are available from traditional shops to...

• The European investment Bank (EIB) gave in may of this year, preliminary approval for a loan of €350 million under the request of the Swedish company NorthVolt AB (founded in 2015) for the construction of the plant (giavarini Northvolt Ett) for the production of batteries in the city of skellefteå in the North-East of Sweden (västerbotten province) after the company has completed the necessary fundraising (by the way, in June in the Swedish girafarig at a record €886 million invested himself of the Volkswagen Group – ed.)
• According to Savkovich, he hoped that the EIB jointly with the European Bank for reconstruction and development (EBRD) will develop a "mechanism for investment in raw materials", which will help to build the supply chain of rare earth metals needed for the production of batteries before the end of this year.
• In may, the EU established together with Microsoft founder bill gates and other investors Fund Breakthrough Energy Ventures with a capital of ₽100 million, designed to facilitate the transition to alternative energy resources, which is likely to include batteries.
• The EC merged not less than 260 industrial companies, including such powerful as the PSA Group, Total and Siemens, the Alliance aimed at building the capacity of production in Europe of devices for storage of electricity.
Analyst energy conservation from the London branch BloombergNEF James Frith said: "a Year or two ago we all had the impression that Europe is already too late. But they (government and business – ed.) assumed liabilities, and Europe is now in a strong position".

... made in ecological style fashion

In the words of Frith, by 2025, Europe will be able to control about 11% of the world production capacities for production of batteries, compared to 4% currently. This will reduce the market share of China and lead to competition to American industry batteries. According to EU estimates, by the time the market for batteries for electric cars can reach a volume of €250 billion per year. It is estimated that at least €100 billion euros have already been allocated for the construction of battery factories or their suppliers in Europe.

The aim is to build a plant in Europe that could supply automakers in the region, without requiring imports from main centres of battery production in Asia. Currently, the manufacturing of batteries in China is dominated by companies such as Modern Amperex Technology Co., CATL and BYD.

Elon Musk is also building in the US (and China – ed.) "giavarini" to produce batteries for his Tesla Inc. that, too, will inevitably have a direct impact on the global market for batteries.

While Europe has not yet developed a well-organized supply chain of batteries, although it has attracted investment in local plants of Korean companies, including LG Chem and Samsung SDI, and CATL.

New efforts of the EC is to stimulate the creation of capacity to produce a battery large enough to supply such auto giants as BMW and Volkswagen Group, is planning a massive increase in the production of electric vehicles in the coming years. However the forecast growth in the coming years the share of electric vehicles is also relevant for the automotive industry as a whole.

However, no European company will get the lion's share of investment or aid from the EC. Instead it will receive dozens of manufacturers in addition to PSA and Total that build a plant for the production of battery cells (elements) in German Kaiserslautern. The investment also will go to suppliers of parts or raw materials, including Siemens, Umicore, Solvay, and Manz.

Depressed by the loss of control in the last decade over the industry of solar panels, and now Germany intends to lead in the field of batteries. This country was the largest producer of solar panels in the early 2000s, years before Chinese companies, backed by government loans, have become the undisputed leaders in this market.

Regarding the manufacture of electrochemical cells, for example, the German Minister of economy and energy Peter Altmaier is concerned about the preservation of 800,000 jobs in Germany are directly related to the production car. According to Altmaier, the share of batteries now accounts for about one third of the total cost of electric car, and no programs to produce them in Europe, the majority of these jobs will move to Asia.

He said on the German TV channel ARD in June: "In Europe there is a huge demand on the battery. Therefore, we must strive to do the best batteries in Germany, in Europe and in the world."

Sefcovic assumes that 10 or 20 European "girafarig" will produce the elements of the batteries across Europe, and with its support, "European battery Alliance" aims to coordinate research that will be the basis of a plan of revenge.

NorthVolt the company aims to become one of the largest manufacturers of batteries, focusing on mass deliveries of BMW, Volkswagen Group and other major brands 

CEO NorthVolt Peter Karlsson said: "If we want to become one of the largest manufacturers in Europe by 2030, then we need to build capacity at 150 GW•h. Consumer demand is so high that we are accelerating the implementation of our plans. We made a huge step towards the creation of a new branch of Swedish industry, which will have a big impact on reducing our dependence on fossil fuels".

Partners to create giavarini Northvolt Ett – NorthVolt AB and Volkswagen Group (if the participation of the Swiss ABB Ltd.)

PS the construction of the plant in skellefteå will begin in August of this year, and large-scale production is scheduled to deploy in 2021. Giavarina Northvolt Ett will serve as the main production site of the company Northvolt where will be the training of active materials, assembling cells, and also disposal of used batteries. With the participation of such investors like the Volkswagen Group, Goldman Sachs, as well as the BMW Group, AMF, Folksam Group and IMAS Foundation gigaparts will be expanded to annual production of batteries for a total capacity of not less than 32 GWh, which is about 16 times more than power generation at the Hoover dam, and about 10 times more than the installed capacity of America's largest coal-fired power plants..