New analysis shows why made-in-EU requirements are a sovereignty premium worth paying.
As the European Union is debating whether to set “Made-in-EU” criteria for public funding in the Industrial Accelerator Act, new analysis shows how scale will reduce the current cost advantage of Asian battery makers. Only with Made-in-EU criteria can the industry in Europe scale and learn, which is the critical factor in reducing the cost gap.
Access to batteries, their components and critical minerals is essential for Europe’s economic security and resilience. Battery materials are vulnerable to the same trade weaponisation as witnessed with rare earths, Europe must be prepared.
Without significant action on battery production support or trade defense, using Union Content criteria in the Industrial Accelerator Act (IAA) as a lever for public support is the only option on the table for building a resilient and local battery industry across Europe. This will determine whether homegrown battery makers, such as ACC, Powerco and Verkor, can remain competitive. (....)