A total of 38 makers of EV-use batteries have been set up in recent years in Europe, which is expected to become the world's second largest EV-use battery supply chain next only to China in 2025, according to industry sources.

The EV-use battery supply chain in Europe is estimated to have total annual production capacity of 460GWh in 2025 and 1,144GWh in 2030, with the capacity to meet demand from 90% of new EVs sold in the European market, the sources indicated.

Most of the new makers are invested by or in collaboration with Europe-based automakers, the sources said.

Europe-based automakers, including Volksdwagen (VW), Daimler, Renault and Volvo, have plans to invest in production of EV batteries through setting up own factories or joint venture makers or cooperating with existing battery suppliers, the sources noted.

Daimler has invested in China-based battery maker Farasis Energy (GanZhou), which will set up a factory in eastern Germany specifically for supply for Daimler, the sources said.

China-based Contemporary Amperex Technology and BYD as well as South Korea-based LG Energy Solution, SK Innovation and Samsung SDI, all being globally tier-1 EV-use battery makers, have set up or are setting up factories in Europe, the sources noted.

Startups Verkor, Britishvolt and Italvolt will produce EV-use batteries in France, the UK and Italy respectively, the sources indicated.

Lithium battery capacity share by region, 2020 and 2025

Source: Benchmark Mineral Intelligence, compiled by Digitimes, July 2021