EU’s Dependency on China for Batteries Could Mirror Past Russian Energy Reliance, Warns Paper

EU could depend as much on China batteries as Russian energy

The European Union (EU) could become heavily reliant on China for lithium ion batteries and fuel cells by 2030, similar to its dependence on Russia for energy before the Ukraine conflict.

EU leaders will discuss measures to reduce this dependency and diversify towards Africa and Latin America.

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

The EU currently has a strong position in the intermediate and assembly phases of making electrolyzers, but relies heavily on China for fuel cells and lithium ion batteries.

EU could depend as much on China batteries as Russian energy

A paper prepared for EU leaders warns that the EU may become as dependent on China for lithium ion batteries and fuel cells by 2030 as it was on Russia for energy before the Ukraine conflict. To reduce this risk, EU leaders will discuss proposals to diversify towards Africa and Latin America. The EU’s goal of achieving net-zero carbon dioxide emissions by 2050 will greatly increase the demand for lithium ion batteries and fuel cells.

Concerns over EU’s dependence on China

The paper highlights the EU’s heavy reliance on China for fuel cells and lithium ion batteries, which are crucial for electric vehicles. Without strong measures, the EU’s energy ecosystem could have a dependency on China similar to its previous dependence on Russia for energy, resulting in severe consequences. The EU aims to reduce this vulnerability and ensure its energy security.

Expanding vulnerabilities in the digital-tech space

The paper also raises concerns about the EU’s vulnerabilities in the digital-tech space. Forecasts suggest a sharp rise in demand for digital devices in this decade, including sensors, drones, data servers, storage equipment, and data transmission networks. While the EU has a relatively strong position in certain areas, it shows significant weaknesses in others. Addressing these vulnerabilities will be crucial for the EU’s economic security and technological advancement.

Source Credit