The EU sources a large proportion of its lithium-ion batteries from China. According to media reports, a strategy paper warns the EU that demand could increase and lead to even greater dependence on China – and calls for countermeasures.
In a strategy paper, the Spanish EU Council Presidency warns the international community against dependence on China for lithium-ion batteries and fuel cells. Without countermeasures, the EU could become as dependent on China by 2030 as it was for energy supplies from Russia before the war in Ukraine, reports the Reuters news agency. The paper, which was prepared for the heads of state and government of the EU, is intended to form the basis for discussions about Europe’s economic security at the EU summit in Granada, Spain, at the beginning of October.
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The EU wants to be climate neutral by 2050, meaning that it no longer produces any greenhouse gases. Because wind and solar energy are not always available, the EU needs more energy storage to achieve its goal, according to the paper. This will increase EU demand for lithium-ion batteries, fuel cells and electrolyzers needed in hydrogen technology by 10 to 30 times in the coming years.
“Without the implementation of effective measures, by 2030 the European energy ecosystem could end up in a dependency on China that is different but similar in severity to that of Russia before its invasion of Ukraine,” the document says. The EU is strong in the production of electrolyzers compared to other countries – but it is very dependent on China for fuel cells and lithium-ion batteries, which are needed for electric cars.
Lithium-ion batteries and fuel cells are not the only areas where the EU is vulnerable, the paper says. A similar scenario could threaten with digital technologies. Forecasts indicate that demand for sensors, drones, servers, storage devices and data transmission networks will rise sharply this decade. The EU has a relatively strong position when it comes to networks, but has significant weaknesses in other areas.