Will Europe end reliance on China for lithium-ion battery cells by 2027?

The EU can end its reliance on China for lithium-ion battery cells by 2027, Transport & Environment (T&E) has forecast. Europe is on track to produce enough Li-ion cells by then to fully meet domestic demand for electric vehicles and energy storage, according to the new analysis of battery-makers’ announcements.

Does China control the lithium-ion battery supply chain?

In a recent study, researchers from Fraunhofer FFB and the University of Münster analyzed the ownership structures and geopolitical dependencies along this supply chain. The result: China controls almost the entire value chain of lithium-ion batteries - from the extraction of raw materials to the production of the batteries.

Which countries dominate the lithium-ion battery supply chain?

The study by the Münster researchers shows that China dominates the entire lithium-ion battery value chain - from raw materials to production, worldwide. Similar to China, Europe, and the USA are also intensifying their efforts to gain greater control over the lithium-ion battery supply chain by acquiring mines and refineries.

What is China's role in the global battery supply chain?

Note: Excludes trade within regions. China has a major role at each stage of the global battery supply chain and dominates interregional trade of minerals.

Does the global lithium-ion battery supply chain have ownership structures?

The joint paper by researchers from Fraunhofer FFB and the University of Münster is based on a comprehensive data analysis. To this end, the ownership structures along the global lithium-ion battery supply chain were analyzed and compared with the geographical distribution of production shares.

Could the EU become more dependent on China for lithium?

Pieces of Lithium. Credit: Steve Morfi/Shutterstock.com. According to a paper prepared by EU leaders obtained by Reuters, the EU could become as dependent on China for lithium-ion (Li-ion) batteries and fuel cells by 2030 as it was on Russia for energy before the start of the war in Ukraine, unless it changes course.