Europe it is working to expand domestic production of EV batteries and thus reduce its dependence on countries like China. In particular, by 2030, almost 50 battery factories should be built on the Old Continent. However, secondly Transport and environmenta number of external factors, includingInflation Reduction Act (IRA) which we have spoken of many times, risk compromising part of this plan.
In particular, the same U.S. law that provided huge funding to attract investment in electric mobility could lead companies to cancel or reconsider battery factory projects in Europe.
Pause about Italythe report states that 48% of planned battery production will be at risk. Production that can be delayed, reduced or even cancelled. Transport & Environment is pointing the finger, in particular, at the Italvolt project, which could be scaled back in favor of a dual Statevolt project in California.
But, according to the analysis, there should be no problems with the Stellantis plant in Termoli, the project of which is underway. Instead, looking at the entire Old Continent, the study reveals a scenario that is most certainly not a positive one. According to Transport & Environment, battery production in Europe by 2030 will annual capacity 1.8 TWh. Apparently, mainly because of the IRA, 68% of this production will be at risk. We are talking about 1.2 TWh, which could equip 18 million electric vehicles.
If this capacity is indeed lost, Europe will not be able to meet domestic demand for batteries and will have to rely on companies from other countries to ensure an adequate supply of automakers.
Without these production volumes, Europe will not be able to meet the domestic demand for batteries expected by 2030 and will therefore have to resort to large imports from foreign competitors.
Among other European countries where battery factory plans could change dramatically there is Germany. In particular, according to the study, the production of batteries would be at risk. at the Tesla Gigafactory in Berlinespecially after the news that the American company will concentrate battery production in the US to take advantage of IRA benefits.
Also at risk would be Severvolt project. At the moment, the company has received only part of the financing and the construction of the plant has not yet begun. In addition, Northvolt senior management has already announced that the project may be delayed to prioritize US expansion.
Transport & Environment then summarized the risks of each individual battery plant project in Europe in the table below.
To oppose the Inflation Reduction Act (IRA),European Unionaccording to Transport & Environment, must prepare general financial support instrumentsoutside promote simplified authorization procedures. Charles Trittopolicy specialist T&E Italia, states in this regard:
Industrial plans for the production of batteries in the EU are under fire from the US and China. To compete effectively, the European Union must now adopt battery-focused green industrial policies, providing strong support for increased production. In short, the continent is called upon to respond to US protectionist policies and Chinese dominance in recent years to take the lead in this strategic sector. Otherwise, there is a risk of accumulation of delay, which can lead to a major industrial injury.
Europe’s response should reflect the US Inflation Reduction Act as closely as possible in terms of investment focus, simplicity and visibility. A central fund is needed, accessible to all Member States, with priority given to the EV value chain, i.e. vehicles and batteries, as well as renewable energy and smart grids. To compete, the EU must have a strong industrial policy that increases production and is able to encourage and accelerate environmentally sustainable projects.
Finally, Transport & Environment reminds that on 14 March the European Commission will publish Net zero industrial law which can be seen as a sort of first response to the Inflation Reduction Act (IRA).
T&E is asking for production targets, tax breaks and subsidies to increase production in full compliance with European environmental standards. The green “simplification” program is also needed to streamline project authorization and approval processes, according to the organization.
Source: HD Motori
Ashley Fitzgerald is an accomplished journalist in the field of technology. She currently works as a writer at 24 news breaker. With a deep understanding of the latest technology developments, Ashley’s writing provides readers with insightful analysis and unique perspectives on the industry.