“If the European Union does not take decisive action, by 2030 it may become dependent on China for lithium-ion batteries and fuel cells to the same extent as it was dependent on Russia for energy before the war in Ukraine,” according to a document prepared for leaders. European Union, to which he refers. European leaders are scheduled to discuss the issue on October 5 during a meeting in Granada, Spain.
The European Union needs, among others, lithium-ion batteries to achieve zero CO2 emissions
The letter cited by the agency states that “Europe will need ways to store energy to achieve its goal of net zero carbon dioxide emissions by 2050.” It goes on to say that “this will rapidly increase our demand for lithium-ion batteries, fuel cells and electrolysers in the coming years”, which is expected to increase by 10 to even 30 times.
Although the European Union has a strong presence in the intermediate and assembly stages of electrolyzer production (it has over 50% of the global market share), it is highly dependent on China for fuel cells and lithium-ion batteries, which are key to electric vehicles.
China has a tight grip on raw materials. “When it comes to risks, geopolitics is certainly the most important”
New technologies, especially those related to energy transformation, are now a hot topic, both economically and politically – and in its broadest geographical sense. The Americans, followed by other countries, are imposing restrictions, especially on chips. At the beginning of July 2023, China announced export restrictions on gallium and germanium, which are sometimes classified as so-called critical raw materials. These elements are crucial in “green” sectors of the economy, necessary, among others: in the production of semiconductors and electric cars. Dominique Senard, president of Renault, estimated that after the introduction of the ban on the sale of combustion cars in the EU (planned for 2035), Chinese electric cars will actually flood the European market. – If a real geopolitical crisis occurs, the damage to battery factories powered exclusively by external products will be significant – he warned in an interview with Reuters.
The EU is already trying to answer this by trying to diversify its supply sources. And the European Commission last week launched an investigation into China artificially lowering the prices of electric cars. – Europe is open to competition, but we must defend ourselves against unfair practices. (…) Too often our companies are excluded from foreign markets or fall victim to predatory practices. They are often undercut by competitors benefiting from huge state subsidies. We have not forgotten how China’s unfair trade practices have impacted our solar industry – , emphasizing the importance of electric cars in achieving the European Union’s climate goals.
– When it comes to risks, geopolitics is certainly the most important – from Dom Maklerski BOŚ. – Western countries, in the context of strategic raw materials, are most afraid of the fact that the energy transformation process, the most important trend on the raw materials market, takes place with their relatively small participation. Much is taking place here in Asia, China, and Russia – countries with which the West’s relations are very tense, she noted.
Source: Gazeta
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