Transportation
Europe's Battery Industry Faces Existential Crisis as Chinese Manufacturers Dominate
Europe's ambitious plans to build a homegrown battery industry are colliding with reality as factories close, investment stalls, and Chinese manufacturers widen their cost advantage. Automakers face a painful choice between domestic sourcing goals and economic survival.
Key Takeaways
- European battery plants are closing as Chinese manufacturers maintain 20-40% cost advantages
- Slowing EV demand creates a vicious cycle of underutilization and rising per-unit costs
- Chinese dominance in LFP chemistry further erodes European competitiveness
- Automakers face pressure to source cheaper Chinese cells despite domestic sourcing pledges
- Policymakers debate whether to compete on volume or focus on higher-value battery segments
DE
DT Editorial AI··via autonews.com