Attempts by the European Union (EU) to increase the production of batteries for electric cars may “Not enough to meet demand”warned the EU Audit Chamber, while the ban on new thermal vehicles is planned for 2035.

In a report published on Monday, the institution indicates problems related to the availability of raw materials necessary for the production of batteriesas well as rising energy prices and costs and global competition (including China), which could threaten the competitiveness of the Old Continent.

“A new battery gigafactory is announced in Europe almost every week”, – the head of the audit department, Annemi Tertelboom, admitted at the press conference. However, she cautions in stating this “The EU’s chances of becoming a world leader in battery production are not optimal. »

“We risk missing our target of selling only new zero-emission cars by 2035, or being able to achieve this target only by importing batteries or electric cars, which would harm the European industry.”she added. “We must not allow the EU to find itself in the same situation of dependence on batteries that it has known on gas in relation to Russia”– warned the manager.

To a global shortage of raw materials?

The EU Court of Auditors predicts that in the short term European battery production will face a global shortage of key raw materials. She refers to the forecasts of the Joint Research Center (JRC) of the European Commission, according to which the global deficit will really be felt by 2030by this time, the majority of battery production capacities in the EU will be operational.

For five key raw materials (these are cobalt, nickel, lithium, manganese and natural graphite), The EU is 78% dependent on imports from a small number of countries. For example, approximately 87% of unprocessed lithium is imported from Australia, 68% of cobalt comes from the Democratic Republic of Congo, and 40% of natural graphite is supplied by China.

Furthermore, the EU does not have long-term free trade agreements with these three main suppliers that could guarantee continued access to these raw materials. The Accounting Chamber also notes geopolitical risks associated with certain countrieswhich could jeopardize supplies, such as to China, where the Taiwan issue is straining relations between China and the West.

We remind you Currently, China accounts for 76% of the world production of electric batterieswhile the EU represents only 7%.

Is Europe already caught in a vice?

Regarding the mining of these minerals in the EU, although lithium is present in large quantities in Portugal and France, on average it takes 12 to 16 years from discovery to production.

It should also be remembered that Europe also faces significant competition, particularly from the United States, which offers incentives to companies that choose to set up battery factories there thanks to its anti-inflation law.

A protectionist measure that will undoubtedly prompt European countries to act, but probably belatedly.

What are the solutions?

The European Commission proposed to solve these challenges a few months ago regulatory relaxations to promote green industries, including batteries.

Another project, presented in parallel, aims to reduce the EU’s dependence on critical raw materials by promoting extraction in Europe and establishing cooperation with more suppliers.

However, the Accounting Chamber highlights other dangers: “As the cost of factors of production such as energy and raw materials, batteries and therefore electric vehicles may become unaffordable for many owners”which will lead to “decrease in demand for electric vehicles and decrease in the economic attractiveness of investments in production”.

Some manufacturers, such as Carlos Tavares, head of Stellantis, have already warned of these potential problems in the more or less short term. And, it would seem, Europe is barely waking up to this.