A new report by the transport and environment campaign group Transport & Environment (T&E) suggests that the European Union could potentially reduce the cost of locally manufactured electric vehicle (EV) batteries dramatically by ramping up production across the region. Currently, batteries made in the EU are about 90 % more expensive than those imported from China. However, the T&E analysis indicates that with strong local scaling and several efficiency improvements such as lower scrap rates, greater automation and skilled labour, this gap could shrink to around 30% by 2030.
The proposed “Made in Europe” strategy would prioritize European-made batteries and other green technologies when public funds are allocated. This in turn would help strengthen supply chains and reduce dependence on imports.
If realised, the narrower cost gap which is equivalent to roughly €500 per electric car, could be eased even further with public incentives such as tax rebates. This would make EVs more affordable for consumers while boosting the competitiveness of European battery manufacturing.
Source: Reuters.com
