Automotive Study: European Battery Sovereignty
Towards greater competitiveness and less dependency
Europe’s automotive industry is at a strategic inflection point. As electric mobility becomes the new standard, the continent faces a critical challenge: securing control over battery production, the most essential and expensive component of electric vehicles (EV). While EV adoption continues to accelerate, Europe remains heavily reliant on Asian manufacturers, exposing its automotive sector to pricing volatility, supply chain disruptions, and long-term strategic vulnerability.
Building Europe’s battery sovereignty
This study explores the urgent need for Europe to build a competitive and sovereign battery ecosystem. It examines the current state of battery manufacturing across the continent and highlights the risks of continued dependency on foreign players. Drawing on market data, strategic modelling, and expert insights, the publication outlines what European OEMs and suppliers must do to avoid becoming permanent price takers in the global EV race.
Three strategic scenarios for Europe
At the heart of the analysis lies a simple truth: battery sovereignty is not just about industrial capacity, it’s about competitiveness, innovation, and geopolitical autonomy. The study introduces three strategic scenarios for Europe’s battery future, each with distinct implications for the automotive value chain:
- Passive trajectory – Europe fails to take coordinated action. Battery investments remain fragmented, and most announced projects are delayed, downsized, or cancelled. Domestic production stagnates, leaving OEMs exposed to foreign supply chains and vulnerable to geopolitical disruptions.
- Limited advancement – European firms secure a moderate share of global battery production through selective investments, joint ventures, and public-private partnerships. Some domestic capacity is built, but the ecosystem remains partially dependent on foreign technology and materials, limiting strategic control.
- Strategic Sovereignty – Europe achieves a strong market position through coordinated industrial policy, large-scale investment, and leadership in next-generation battery technologies. A robust domestic ecosystem emerges, supported by secure raw material access, advanced recycling infrastructure, and technological innovation.
Remaining competitive: technology levers and coordinated action
Beyond market dynamics, the study also explores key technology levers that can help Europe leapfrog into leadership, innovations that are not only technical upgrades but strategic tools to differentiate products, reduce costs, and compete globally.
All in all, Europe must act decisively to build a resilient and scalable battery ecosystem. This requires coordinated efforts across critical dimensions like raw material access, processing capabilities or recycling infrastructure. Supported by the EU’s Clean Industrial Plan, the path to sovereignty is within reach, but time is of the essence.
Whether for industry executives, policymakers, investors, or researchers, this study provides essential insights into one of the most decisive battlegrounds of the automotive transition. It offers a clear and actionable roadmap for transforming Europe from a battery price taker into a strategic global player.
Download the full study here to discover how Europe can secure its future in the electric mobility era.
