September 20, 2025: The EU has announced a fresh €1.8 billion ($2.2 billion) bid to protect the bloc’s nascent EV battery industry from being overrun by global competitors — as latest analysis suggests the move could be too little and too late.
European Commission president Ursula von der Leyen said in her state of the union address on September 10 the ‘battery booster’ package would be much-needed “equity” to boost production in Europe.
The announcement came less than a year after the Commission unveiled a €4.6 billion investment boost for a range of technologies including EV battery cell manufacturing, in addition to a €200 million loan guarantee.
However, a report released earlier this month by Deloitte — ‘European Battery Sovereignty, Towards Greater Competitiveness’ — warned the continent’s heavy reliance on Asian battery manufacturers poses growing risks to its automotive industry.
Battery production, despite its importance, does not yet play a major role in Europe and, in the global race, it remains a relatively small player compared to other regions, the report said.
In 2024, around 70% of the global supply of battery electric vehicle cells for light vehicles were produced in China. By comparison, Europe accounted for only 13% that same year.
“Although this figure is already relatively low, it still misrepresents the continent’s industrial strength: 97% of this production capacity in Europe, valued at approximately 94GWh, is controlled by non-European companies, mainly Chinese and South Korean manufacturers.,” said the report.
“Only one EU-based player managed to produce a limited volume of battery cells in 2024, and these were largely used for their own vehicle brands.”
Batteries International reported earlier in September that battery industry bosses had warned EU leaders the bloc was facing a ‘moment of truth’.
In an open letter to the European Commission, the CEOs of the Automotive Cells Company, 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.
