Batteries threaten climate and growth in Europe

The European Union could become as dependent on China for lithium-ion batteries and fuel cells by 2030 as it was on Russia for energy supplies before the war in Ukraine. That's the scenario the Spanish presidency will present to EU leaders in Granada on Oct. 5. The paper, obtained by Reuters news agency, calls for stricter measures to preserve Europe's economic security.

In this regard, the Spanish paper says Europe will need energy storage capabilities to meet its goal of net zero carbon dioxide emissions by 2050 due to the unsteady nature of renewable energy sources such as solar or wind power. "This will cause our demand for lithium-ion batteries, fuel cells and electrolyzers to skyrocket." Spanier expects demand to increase 10- to 30-fold in the coming years.

While the EU has a strong position in the production of electrolyzers, with a global market share of more than 50 percent, it is heavily dependent on China for fuel cells and lithium-ion batteries. "Without effective action, the European energy ecosystem could become dependent on China by 2030 in a way that is different from, but similar in severity to, its dependence on Russia before the invasion of Ukraine," the report said.

Lithium-ion batteries and fuel cells are not the only area where the EU is vulnerable, the Spanish presidency paper said. "A similar scenario could play out in the area of digital technologies," it said. Forecasts indicated that demand for digital devices such as sensors, drones, data servers, storage devices and data transmission networks will increase sharply this decade. In the latter area, the EU has a relatively strong position, but in the other areas it has significant weaknesses," the report said.

By 2030, this foreign dependence could seriously hamper the productivity gains that European industry and services desperately need, and hinder the modernization of agricultural systems that is essential to address climate change, the report said. (aum)