September 15, 2025: Europe’s battery industry is facing a ‘moment of truth’, battery industry bosses have warned EU leaders.
In an open letter to the European Commission, the CEOs of the Automotive Cells Company (ACC), battery maker Verkor, and Volkswagen’s PowerCo battery tech firm called for immediate, targeted measures to support a rapid ramping up of battery production across the continent.
The letter, titled Who Will Make Our Batteries? Europe’s Moment of Truth, was released by the European Battery Alliance (EBA) on September 5.
In the letter, the CEOs said Europe’s battery sector did not need a new strategy — but rather a “level playing field to scale”.
The EBA said it supported the industry leaders’ call for pragmatic measures to ensure Europe’s cell manufacturers can compete globally, warning: “Without decisive action, Europe risks losing its strategic autonomy in one of the defining technologies of this century.”
In a separate opinion article published earlier in the month, EBA managing director Emma Nehrenheim stressed that Europe’s battery industry did not need a rethink, but rather the right conditions to thrive.
She underlined that Europe’s producers are experiencing predictable challenges in building complex industrial capacity from scratch, similar to those faced by Asian peers in their early years. She also argued that temporary, output-based support was the most effective tool to help companies bridge the gap to competitiveness.
The EBA said a “decisive phase” lies ahead for the sector. “Without pragmatic, output-based support schemes at EU level, Europe risks ceding a €250 billion ($290 billion) annual market to imports, with significant consequences for its automotive industry, innovation base, and strategic autonomy.”
Failure to act would undermine investor confidence and Europe’s ability to industrialise clean technologies at scale, while swift, targeted action would secure Europe’s place in the global battery race, the EBA said.
The EBA and industry calls follow a string of reports warning EU leaders needed to take urgent steps to defend and nurture the bloc’s battery industry in the face of intense global competition, largely Asian battery players.
A study released last July said Europe’s superficial love-hate relationship with Chinese battery tech and EV investors risked derailing the bloc’s sustainability, economic and security objectives, and potentially harming trade with the US.
Batteries International reported that month that the EU was poised to introduce new workplace exposure limits for sectors including EV battery production — despite warnings the move cost the industry €20 billion over 40 years and force plant closures.
