Europe's bumpy road to a sustainable battery value chain

The report explores Europe's process of transitioning from relying on fossil fuels to building a sustainable battery value chain and whether it can achieve independence from foreign battery supply. It analyzes the progress and challenges associated with onshoring this supply chain and provides an industrial footprint for governments to build a local, resilient, and sustainable battery supply chain.

The following key findings are presented in the report:

Europe is capable of becoming self-sufficient in battery cells by 2026 and manufacturing most of its demand for key components (cathodes) and materials such as lithium by 2030. Over half of gigafactory plans in Europe are still at risk of delay or cancellation, down from nearly two-thirds a year ago. Onshoring the battery supply chain offers significant climate benefits, reducing carbon emissions by 37% when using the EU grid, or 133 Mt of CO2 by 2030 compared to China. When relying on renewable energy sources, the reductions double to 62%. Many of the announced projects, however, remain uncertain, and stronger government action is necessary to aid the nascent industry.

The report concludes with recommended policies for a European industrial blueprint to ensure a smooth transition towards a sustainable battery value chain.

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