An EU Report Reveals A Battery Production Capacity Gap

 

 

 

 

An EU report reveals a battery production capacity gap, with domestic capacity only meeting 21.4% of 2030 demand

 

 

 

 

 

A battery technology report released by the EU Joint Research Centre points out that the EU needs to accelerate battery production to address the competitiveness gap. Global lithium-ion battery demand will reach 1545 GWh in 2024, with 1051 GWh used in electric vehicles and 370 GWh in energy storage. The EU has only achieved 4.9% of its cathode material manufacturing targets and only 0.1% of its anode material targets, relying on external supplies and impacting its competitiveness.

 

The EU lags behind leading battery producers such as China, South Korea, and Japan in competitiveness due to factors including high energy and labor costs in Europe and reliance on imported materials. While lithium-ion battery prices are expected to decrease by 20% in 2024, EU batteries will still be 15% to 50% more expensive than Asian products. Emerging technologies such as sodium-ion, lithium-sulfur, and solid-state batteries are expected to become widespread within the next 3 to 5 years, potentially reshaping the market landscape.

 

In 2024, the EU's battery production capacity only met 21.4% of the projected demand in 2030, an improvement from 17.2% in 2023, but still insufficient to guarantee self-sufficiency. LG Energy Solutions, SK Innovation, and Samsung SDI control over 80% of Europe's production capacity. In 2024, the EU imported €16.5 billion worth of batteries, with over 85% coming from China, highlighting its vulnerability to global market fluctuations due to the trade deficit.