According to the U.S. Automotive News, a report written by consulting firm Dunne Insights for European Initiative for Energy Security (EIES) said that European automakers should act quickly and decisively to shake China’s battery and Dominance in the electric vehicle field and seeking to establish more cooperation with non-Chinese companies.
Traditional European automakers should embrace Tesla and try to capitalize on Tesla’s growing presence in Europe, the report said. Dunne Insights believes that working closely with Tesla to assess its demand for battery supply chain, mineral processing and recycling in Europe may bring opportunities for European companies. “The faster Tesla’s Berlin business is cost-effective and successful, the sooner Tesla can move more production from China to Europe, which means that battery demand will increase in the European market.”
In addition to Tesla, the Dunne Insights report also urged European automakers to deepen their relationship with Japanese and Korean battery manufacturers to reduce their reliance on Chinese batteries. “European companies should prioritize working with Japanese and Korean battery manufacturers to leverage their reliability and consistency of interests in the European market to gain proprietary technology and achieve economies of scale.”
The report recommends that Europe invest 20 billion euros to establish a battery megafactory joint venture with partners in South Korea and Japan. This will be part of the 100 billion euro battery investment target in Europe between 2025 and 2035 to ensure “strategic autonomy”.
“Europe cannot be a vassal state that relies on Chinese imports. Now it’s time to act decisively and build an industry that leads the world, creates jobs and drives innovation,” said Michael Dunne, CEO of Dunne Insights. According to the report’s According to the statement, Europe is currently lagging behind China in terms of battery technology and supply chains, and China’s electric vehicle production exceeds the sum of all other countries.
In addition, China is developing and manufacturing electric vehicles twice as fast as its European competitors, and thanks to production speeds, subsidies and geographical proximity of suppliers, it costs more to produce an electric vehicle in China than in any other country, thanks to production speeds, subsidies and geographical proximity of suppliers. 25% to 30%.
The report said that in the future, cooperation between European and Chinese companies may be “inevitable” but should still be “strictly regulated”. Europe should strive to obtain technology, expertise and investment from China with access to the European market, and Chinese suppliers can only be allowed to sell in the EU if they cooperate with European companies, transfer their expertise and provide local employment opportunities. and manufacture products. The report said that joint ventures can put Europe on an equal footing with China, and that European companies should own 51% or more of their shares in the joint venture to put control in the hands of Europeans.