European metals and materials sectors look for more EU support for battery industry

A consortium of European metals and materials companies has issued a joint letter urging the European Union (EU) to increase financial support for the bloc’s battery industry. They argue that the EU’s current plans and funds are insufficient to compete effectively with China and the United States in the battery sector, which is crucial for electric vehicles (EVs) and renewable energy storage.

In their letter to the European Commission, the companies emphasized that China controls significant shares of cleantech manufacturing and 50-90% of critical minerals processing capacity required for these technologies, making it a dominant player in the global supply chain.

The signatories of the letter include prominent firms such as mining company Rio Tinto, chemical group Solvay, and battery materials manufacturers Umicore and Northvolt. They called for the creation of a European Critical Minerals Fund, which would operate at the EU level and provide direct financing to companies involved in the battery industry.

Additionally, the companies urged the European Commission to expand its innovation fund to include targeted support for the critical minerals sector. They criticized existing EU funding streams as “a patchwork of insufficient, uncoordinated, and complex schemes” that mainly focus on research and development, lacking support for production scale-up and investment attraction.

The letter highlights the urgency of strengthening Europe’s battery industry to ensure the continent’s competitiveness in the transition to green technologies. It also underscores concerns about China’s dominance in the cleantech sector and the United States’ substantial investments under the Inflation Reduction Act.

The signatories argue that Europe’s investment climate has been further complicated by the ongoing conflict in Ukraine, making it imperative for the EU to take swift and decisive action to support its battery industry.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

EV geopolitics intensify as U.S. seeks to break China’s hold on graphite

The U.S. Department of Commerce has issued a preliminary ruling that could dramatically reshape the electric vehicle (EV) battery supply chain by imposing anti-subsidy duties on imports of active anode materials—particularly graphite and silicon—originating from China. This marks a significant escalation in the Biden-Trump era push to counter Beijing’s state-backed dominance in clean energy inputs and reassert American industrial competitiveness in the energy transition.

Announced Tuesday, the decision follows a formal petition filed by U.S. graphite producers alleging that Chinese state subsidies were distorting the market, undercutting domestic suppliers, and threatening the viability of a domestic EV supply chain. The move is an early but pivotal milestone in a broader trade enforcement process that could lead to steep countervailing duties later this year.

Venezuela in talks with companies to increase oil production after sanctions relief

Venezuela’s state-owned oil company, PDVSA, is in discussions with local and international oilfield firms to secure the equipment and services required to boost its diminished production. This move follows the U.S. government’s decision to ease sanctions on the country, granting…

Germany’s Rheinmetall mulls European arms consortium to compete with the US

Rheinmetall is contemplating the establishment of a European arms consortium to enhance competitiveness against U.S. rivals. The German defense group, benefiting from increased defense spending following Russia’s invasion of Ukraine, is projecting record revenue of over 10 billion euros this year…

Stay informed

error: Content is protected !!