“Europe will lead the battery market after electric vehicles”

Input 2021.04.05 16:15 | Revision 2021.04.05 16:17

World’s fastest electric vehicle penetration
Battery-related subsidy reached 8 trillion
“Creating a completely new ecosystem”

It is predicted that Europe will become the world leader in the electric vehicle battery market following the electric vehicle.

As Europe is at the forefront of electric vehicle manufacturers, attempts to establish itself as the largest supply chain of the global electric vehicle battery market seem to be a natural trend. It plans to secure a stable supply chain by securing batteries that are essential for electric vehicle manufacturing in Europe.

The speed of electric vehicles in Europe is faster than anywhere else in the world. As Europe tightened emission regulations and fined them for violations, sales of electric vehicles for battery electric and plug-in hybrid models more than doubled in Europe last year to about 1.3 million units. Beyond China for the first time.

It is expected that 1.9 million electric vehicles will be sold this year due to the trend of launching new models such as Volkswagen and BMW. Accordingly, Europe is expected to record the No. 1 EV sales for the second year in a row.

According to Bloomberg News on the 4th (local time), subsidies for electric vehicle batteries in European countries amounted to 6.1 billion euros (approximately 890 trillion won). The amount of related investment has increased tenfold over a year.

Based on this, Bloomberg selected Swedish battery companies Northvolt, Britishvolt, French Automotive Cells, Tesla, and Volkswagen as major companies to become European EV battery champions.

Founded in 2016 by former Tesla executive Peter Carlson, Northbolt is expanding its tax by signing a $14 billion contract with Volkswagen and BMW. “We want to take 25% of the European battery market by 2030,” said Peter Carlson, CEO of Northvolt.

British Bolt also plans to invest £2.6 billion to build a plant in the northeast of the UK at the end of this year. It is expected to be completed by 2023. In addition, Volkswagen announced last month that it will invest about $18 billion in six battery plants in Europe, including the Salzgitter battery plant in Germany.

Market research firm Bloomberg Nef predicts that “Europe’s share of global battery production will increase from 7% last year to 31% in 2030.” “It’s creating a new industry in Europe. A whole new ecosystem is being created,” said Maros Sepkovik, vice-chairman of the European Commission.

According to Bloomberg, Germany is investing up to 2.6 billion euros in the battery business, inducing Tesla, China’s CATL, and Korea’s LG Energy Solutions to set up factories. SIA Partners estimated that “it is planning to produce 27 batteries capable of producing at least 500 GWh (gigawatt) of cells over 10 years.”

Bloomberg said, “The traditional automakers Germany, France, Italy and the UK are hoping to remain competitive in battery technology and secure a manufacturing base.” “I am not happy to rely on the battery supply from the company,” he reported.