12 out of 16 battery factories in Europe have either been delayed or dropped altogether. That's bad news for the desire for independence from China.
Battery factories in Europe are facing major challenges. According to a report from the research firm Bloomberg, 12 out of 16 planned battery factories with European backing have either been delayed or dropped altogether.
Meanwhile, projects from Asian companies are more on track, with 10 out of 13 factories on schedule, putting further pressure on European automakers already struggling to transition to electric vehicles.
The transition from petrol and diesel cars to electric cars, which must be fully implemented by 2035 due to the EU's upcoming ban on combustion engines, has put European car manufacturers under severe pressure.
The slow pace of battery development is exacerbating the situation. Bloomberg estimates that investments worth 254 billion kroner in European battery factories have been either abandoned, postponed or reassessed.
One of the companies struggling with problems is Northvolt, a European battery group with major owners including Volkswagen, BMW and ATP. Northvolt is working on a new factory near Hamburg, but the project is on shaky ground. If a solution is not found, the factory risks having to abandon the plans, despite support from the German government.
Several projects have already been canceled. Mercedes-Benz and Stellantis have abandoned plans to build two battery factories in Germany and Italy, while Tesla has withdrawn from plans for factories in Sweden and Germany. Norwegian startup Freyr has also halted its projects in Norway and moved them to the United States.
Meanwhile, Asian companies such as CATL and BYD have strengthened their position in the European market. BYD is in the process of building factories in both Hungary and Turkey. While CATL already operates a factory in Germany and is building a new one in Hungary.
China continues to dominate the market, producing around 80 percent of the world's lithium-ion batteries. This means that European carmakers are in a difficult situation as the continent's dependence on Asian suppliers grows while its own projects are delayed or abandoned.
However, the Chinese have also been accused of sabotaging plans for battery factories in Europe. Read more about it here .
