Foreign media: The EU is concerned that it may rely heavily on Chinese batteries

5 days ago • 3 pageviews

NetEase Technology reported on September 18 that a document prepared for EU leaders showed that if the EU does not take strong measures, by 2030, the EU will become more dependent on China in lithium-ion batteries and fuel batteries.

It is reported that EU leaders will meet in Granada, Spain, on October 5. The document, prepared by the Spanish presidency of the European Union, could become an important topic for discussing European economic security.

Concerned about China's growing global confidence and economic clout, world leaders will discuss the European Commission's recommendations to reduce the risk of Europe becoming too dependent on China and the need to diversify supplies towards Africa and Latin America.

The document said that due to the intermittent nature of renewable energy supplies, such as solar or wind, Europe needs to adopt various energy storage methods to achieve net-zero CO2 emissions by 2050. "This will lead to a surge in demand for lithium-ion batteries, fuel cells and electrolyzers, which are expected to grow 10 to 30-fold in the coming years," the document said. ”

Despite the EU's strong position in the intermediate and assembly stages of electrolyzer manufacturing, with a global market share of more than 50%, it relies heavily on China when it comes to fuel cells and lithium-ion batteries needed for electric vehicles.

"If strong measures are not taken, by 2030 the dependence of the European energy ecosystem on China may be similar to and not as severe as dependence on Russian energy," the report said. ”

According to the European Commission, in 2021, the year before the outbreak of the Russian-Ukrainian conflict, the EU imported more than 40% of its total gas consumption from Russia, and imported oil and coal accounted for 27% and 46% of total consumption, respectively.

Stopping most of its energy purchases from Russia triggered energy price shocks in Europe, causing consumer inflation to soar and forcing the European Central Bank to raise interest rates sharply, thus curbing economic growth.

Lithium-ion batteries and fuel cells are not the only vulnerable areas in the EU, and "a similar situation could occur in the field of digital technology," the document said. Forecasts show that the demand for digital devices such as sensors, drones, data servers, storage devices and data transmission networks will rise significantly in the EU over the next decade. ”

"The EU is relatively strong in data transmission networks, but significantly lags behind in other areas," the report said. ”

By 2030, the report also notes that this dependence on foreign countries could severely hamper much-needed productivity gains in Europe's industrial and service sectors, and could hinder the modernization of agricultural systems, which are critical to combating climate change. (little)