With Europe expected to lead the world in electric-car sales for a second straight year, an epic rush to build a battery-supply chain from scratch is playing out across the continent.
After years of ceding the EV battery business to foreign companies, Europe wants in. Prospective manufacturers are popping up in the Nordic region, Germany, France, the U.K. and Poland in a transcontinental competition to chip away at the dominance of China’s Contemporary Amperex Technology Co. Ltd. and South Korea’s LG Energy Solution.
Fueled by state support of at least €6.1 billion ($7.3 billion) and investment plans totaling 10 times that in just one year, the race is on for a regional champion to emerge. The contestants include startups Northvolt AB in Sweden, Britishvolt Ltd. and France’s Automotive Cells Co., and powerhouses Tesla Inc. and Volkswagen AG. BloombergNEF estimates the continent could see its share of global battery production rise to 31% by 2030 from just 7% last year.