EU’s Dependency on China for Batteries Could Match Russian Energy Crisis, Warns Paper

EU could depend as much on China batteries as Russian energy

The European Union (EU) could become as reliant on China for lithium ion batteries and fuel cells by 2030 as it was on Russia for energy before the war in Ukraine, Following a paper prepared for EU leaders.

EU leaders will discuss proposals to reduce dependence on China and diversify towards Africa and Latin America, amid concerns over China’s growing global assertiveness.

Europe’s goal of achieving net-zero carbon dioxide emissions by 2050 will require a significant increase in the demand for lithium ion batteries, fuel cells, and electrolyzers.

The EU currently relies heavily on China for fuel cells and lithium ion batteries, which are crucial for electric vehicles, and without strong measures, the EU could have a similar level of dependency on China as it had on Russia before the invasion of Ukraine.

EU could depend as much on China batteries as Russian energy

The European Union (EU) faces the risk of becoming as dependent on China for lithium ion batteries and fuel cells by 2030 as it was on Russia for energy before the war in Ukraine, warns a paper prepared for EU leaders. The paper, obtained by Reuters, highlights the need for strong measures to reduce dependence on China and diversify towards Africa and Latin America. With the EU’s goal of achieving net-zero carbon dioxide emissions by 2050, the demand for lithium ion batteries, fuel cells, and electrolyzers is expected to multiply between 10 and 30 times in the coming years.

Renewable energy storage and EU’s reliance on China

The intermittent nature of renewable energy sources like solar or wind necessitates the need for energy storage solutions to achieve the EU’s net-zero carbon dioxide emissions goal. However, the EU currently heavily relies on China for fuel cells and lithium ion batteries crucial for electric vehicles. Without implementing strong measures, the EU could face a similar level of dependency on China as it had on Russia before the invasion of Ukraine. This dependency poses a significant risk to the EU’s economic security and energy independence.

Diversification and reducing vulnerability in the digital-tech space

In addition to the energy sector, the EU also faces vulnerability in the digital-tech space. Forecasts suggest a sharp rise in demand for digital devices such as sensors, drones, data servers, storage equipment, and data transmission networks in this decade. While the EU has a relatively strong position in certain areas, it shows significant weaknesses in others. Diversifying towards Africa and Latin America could help reduce the EU’s vulnerability and dependence on China in the digital-tech sector as well.

In the end, the EU needs to take strong measures to reduce its dependence on China for lithium ion batteries, fuel cells, and digital devices. Diversification towards other regions and strengthening its position in these sectors are crucial for the EU’s economic security and energy independence.

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