Europe must seize the opportunity to build a competitive battery industry

The European Economic and Social Committee (EESC) held a high-level experts’ debate on the European battery industry which called for urgent and coordinated action to strengthen Europe's battery ecosystem and secure its industrial future. By combining strategic investment, innovation, industrial capacity and social responsibility, the battery transition can become a genuine European success story.

On 11 June, the Consultative Commission on Industrial Change (CCMI) of the European Economic and Social Committee (EESC) held a high-level debate on The Future of the European battery industry. The goal was to advance policy discussions on making Europe’s battery manufacturing industry stronger, with a focus on the strategic potential of sodium batteries. 

Alain Coheur, President of the CCMI, pointed out that ‘Europe’s battery industry faces significant challenges, including intense global competition, high production costs, vulnerabilities in the supply chain and growing technological rivalry. Yet batteries are not just another industrial product. They are a key enabling technology for industrial change, whether from the perspective of decarbonisation, energy security or industrial leadership.’ 

Therefore, Europe must simultaneously reduce its dependence on imported raw materials, compete with heavily subsidised global markets, ensure access to affordable energy for production, uphold high sustainability standards and safeguard quality industrial jobs.

As Thomas Pellerin Carlin MEP said, ‘To ensure the emergence of an EU battery value chain, the EU must have a comprehensive and stable regulatory framework. Thanks to its CRMA, NZIA and Battery booster, it has the policy to supply batteries. But those batteries require a predictable demand, and this is where the CO2 standards for cars regulation is critical. If, as the far-right suggests it, we were to dismantle that regulation and providing zero predictability to battery manufacturers, we will see the death of this emerging strategic industry’.

Joanna Drake, Deputy Director of the European Commission’s Directorate-General for Research and Innovation (DG-RTD) underlined that the EU funding of EUR 925 million, the BATT4EU Horizon Europe partnership covered the full value chain of batteries, from raw materials across cell manufacturing to recycling. ‘Today, Europe possesses a strong battery community, world-class scientific capabilities, innovative companies, and a growing industrial base. Yet, challenges remain: intense global competition, access to critical raw materials, scaling-up manufacturing, lack of skilled workers. Within these difficulties, we need to ensure that innovation developed in Europe is industrialised in Europe’. And she continued ‘Sodium is cheap, abundant, and easy to process. Sodium-ion batteries promise to be low-cost, safe, and robust, making them ideal for storing renewable energy and accelerating the greening of our electrical grid. They are also promising for small electric vehicles, supporting President von der Leyen’s objective of widening access to affordable electric vehicles’.  

The key issue at the CCMI debate was sodium batteries, which the EESC addressed in its February opinion, 'Enhancing EU strategic autonomy and developing a greener and bluer economy: the potential of the sodium battery manufacturing sector'. Sodium batteries are emerging as an alternative to traditional lithium-ion systems in various strategic sectors. They are crucial for EU energy independence and competitiveness in the global market. Not only are sodium batteries a more environmentally friendly option, but they also offer Europe the opportunity to create an ecosystem that integrates research, industry, and workforce development. However, participants in the CCMI debate cautioned against viewing sodium-ion batteries as the immediate answer to Europe’s battery needs, noting that widespread deployment is still some way off. Nevertheless, they hold significant long-term potential within Europe’s battery ecosystem through gradual and progressive scale-up.

Although China is currently far ahead of its competitors, accounting for nearly 99% of global production capacity, speakers argued that the race is far from over. This is because the technology behind sodium batteries is still in the early stages of development and the foundations of future industrial leadership have yet to be firmly established. This leaves Europe with a rare opportunity. Unlike in the lithium-ion sector, where Asian manufacturers secured a dominant position early on, the sodium-ion industry has yet to produce a clear long-term winner. Several participants therefore argued that Europe is in a position to carve out a leading role if it acts decisively. However, achieving that EU ambition on sodium batteries will depend on more than technological progress alone. Speakers emphasised the need for long-term policy support, targeted public and private investment, stable regulatory conditions and a coordinated economic and political effort if competitive manufacturing capacity is to be established.

During the CCMI debate, participants placed great emphasis on the significance of developing a coherent European battery roadmap. This will transform the goals set out in the European Commission’s Battery Booster Strategy, which the EESC addressed in an opinion adopted in March, into tangible measures across the entire value chain, from innovation and manufacturing to recycling and skills development.

The speakers also felt strongly that this Strategy must be backed by a credible long-term financing plan, with stronger support from both the Commission and the Member States, including through the next Multiannual Financial Framework. Moreover, the ‘Made in Europe’ label should stand for high-quality products and robust social and environmental standards, as well as for industrial competitiveness. 

The EESC also advocates for an ecosystem-based approach that supports SMEs, suppliers and recycling companies along with large manufacturers. Public funding should be linked to the creation of quality jobs, full compliance with EU legislation and respect for the principles of the European Pillar of Social Rights. At the same time, state aid schemes, public procurement and subsidy programmes should be designed to encourage technology transfer and local content, helping build strategic expertise and industrial know-how within the EU.