Europe Ramps Up Auto Battery Battle with US

Europe is ramping up its global challenge to secure locally sourced vehicle batteries with the news that two new gigafactories are being planned.

Two battery manufacturers have confirmed they will collectively invest about $11Bn on factories on the continent after the Europe Union loosened state aid rules for green industry projects in a bid to win the subsidy race with the US, Reuters reports. Both plants are expected to begin production in 2026, employing thousands of people and supply batteries to European carmakers.

Swedish company Northvolt said it has chosen Heide in northern Germany for its factory as long as subsidies are approved, while Taiwan’s ProLogium announced a new plant in the French city of Dunkirk after France offered deal sweeteners and competitive power prices. The EU has been trying to lower its dependency on Asian nations for BEV batteries, although it still relies heavily on imported raw materials such as lithium, cobalt and manganese.

— Paul Myles is a seasoned automotive journalist based in Europe. Follow him on Twitter @Paulmyles_

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