• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 1 hour Thugs in Trumpistan
  • 36 mins Model 3 cheaper to buy than BMW 3 series.
  • 2 hours Would bashing China solve all the problems of the United States
  • 5 hours Pompeo's Hong Kong
  • 2 hours Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 21 hours China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 3 hours Natural gas is crushing wind and solar power
  • 13 hours China’s Oil Thirst Draws an Armada of Tankers
  • 3 hours Coronavirus hype biggest political hoax in history
  • 5 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 12 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 7 hours Michael Moore's Controversial "Planet of the Humans" Movie
  • 8 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
Why The World’s Largest Asset Manager Has Seen Its Shares Soar

Why The World’s Largest Asset Manager Has Seen Its Shares Soar

Blackrock, the world’s largest asset…

Solving The Energy Industry's Biggest Problem

Solving The Energy Industry's Biggest Problem

MIT Researchers are working on…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Europe Throws Billions At New EV Battery Ventures

Europe is slowly but surely working to catch up with the world’s largest EV battery producers after it was almost terminally late to the party. After years of neglecting the lack of local battery production capabilities, now the EU has announced yet another consortium in the area, a tie-up among carmakers, energy companies, and others interested in building battery capacity in Europe.

Forbes’ Brussels correspondent Dave Keating reports that the consortium will be funded with US$5.6-6.7 billion (5-6 billion euro), with US$1.34 billion (1.2 billion euro) in the form of subsidies coming from Brussels. The rest will come from private companies.

It’s good news that European companies are investing so heavily in EV batteries, but it’s worth noting the current leaders in this space—China and South Korea—are not exactly standing still. They are building EV battery production capacity in Europe, too.

A Chinese battery maker, CATL, for example, last year announced plans to build a factory in Germany, after it sealed a battery supply deal with BMW. This deal alone, interestingly, is worth more than what private companies have pledged for the new European battery consortium. What’s more, most of the batteries will be made in China, with a minority manufactured at the German site. In other words, the companies that dominate battery supply for European carmakers and their very ambitious EV plans will not let go of the top spot easily.

Yet the Europeans are making an effort in a better-late-than-never push. Construction work on the first gigafactory on the continent may begin soon, after one of the companies behind it, Swedish Northvolt, said it had secured an initial investment of 1.6 billion euros for the start of construction of the first phase of the factory, which will have a capacity of 8 GWh per year. Ultimately, the gigafactory should have an annual capacity of 32 GWh but this would require another US$2.68 billion (2.4 billion euro). Financial and tech backers of the gigafactory include Volskwagen, BMW, ABB, and Siemens. Related: OPEC Unfazed By Potential Supply Shortage

There are also several other partnerships in the EV battery space, including one for sourcing raw materials, another for battery cell production, and a few others covering chemicals, battery pack design, and even recycling.

The European Union’s support, both financially and regulatory, is a key factor that could go a long way towards ensuring the success of any EV battery-related venture. A while back, Total’s Patrick Pouyanne last November made a scathing remark about this support: he announced Total’s battery maker Saft will only invest in production if the central government of united Europe could ensure it could compete with the Asian battery manufacturers. The remark was made after announced plans to begin battery production in 2020, no less, which made it all the more scathing.

More than a billion euro in subsidies for EV batteries could be a good start, but it might not be all the EU will do to encourage more local production of EV batteries. European carmakers have poured billions in future EV production already. While imported batteries are cheap, they are imported, and that makes the importers vulnerable to a variety of risks that could be avoided with more local production. However, this has to be competitive with the Asian imports. The future of the EV batteries in Europe remains quite a conundrum to solve.

By Irina Slav for Oilprice.com

More Top Reads from Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News