Why hasn’t Europe’s battery industry taken off on its own?

The moat protecting the battery industry is not a single patent, but ten thousand manufacturing details. Harald Proff, Global Automotive Sector Leader at Deloitte, stated: 'Europe’s battery future will not be decided in laboratories; what truly matters is the first ten thousand tons of material, the first twelve months after commissioning, and the first yield crisis during mass production.' In its report released on April 17, 2026, the European Commission’s Joint Research Centre acknowledged that the EU battery industry no longer holds a clear advantage over its major competitors—and has even lost its leading edge in battery research. Nonetheless, the report still attempts to preserve some dignity for Europe, suggesting that the continent may retain competitiveness in high-performance batteries required for premium electric vehicles, while remaining heavily reliant on external supply for low-cost batteries used in budget EVs and stationary energy storage. The International Energy Agency forecasts that—even as global cell manufacturing locations become more dispersed—by 2030, at least 85% of global battery component production capacity will remain in China. Europe’s dependence will thus shift from direct imports toward joint ventures, local production, and technology partnerships. Of course, Europe does host several battery projects controlled by domestic firms or homegrown automakers—but most of these factories are still in commissioning or ramp-up phases, with nameplate capacity yet to translate into stable, reliable supply. For instance, ACC—a joint venture backed by Stellantis, Mercedes-Benz, and TotalEnergies—has launched operations at its 'super-battery factory' in Billy-Berclau/Douvrin, France, in 2023. This marks France’s first large-scale动力电池 factory, already producing NMC (nickel-manganese-cobalt) lithium-ion cells. Meanwhile, ACC has suspended plans for its German and Italian super-factories. Another example is Verkor Gigafactory in France—an initiative promoted by the French government and jointly supported by European industrial capital, financial capital, and Renault Group—betting on the high-performance battery market. Verkor’s Dunkirk plant officially commenced operations at the end of 2025, with an initial planned capacity of 16 GWh, becoming a key benchmark for France’s battery self-reliance. On June 9, 2026, the European Commission formally established the 'Battery Booster Facility', allocating up to €1.5 billion from the EU Innovation Fund in interest-free loans to help European battery factories navigate the critical ramp-up phase—from trial production to full-scale commercial output. Automotive Business Review observed that, in the official application criteria published in July 2026, the EU added a highly significant threshold: applicants must not only be located within the European Economic Area and plan an annual capacity of no less than 10 GWh, but must also have already entered the capacity-ramp-up stage—and must represent the applicant’s very first full-commercial-scale EV cell manufacturing project worldwide. This effectively excludes Chinese and Korean battery companies. Going forward, only collaborative projects—where European entities hold controlling stakes and Chinese firms provide technology and manufacturing expertise—are likely to qualify for EU policy support—not independent replication of Chinese battery factories in Europe.

A battery factory with total investment exceeding RMB 10 billion has officially opened!

According to foreign media reports, Verkor—the French battery manufacturer—has officially inaugurated its first gigafactory in northern France’s so-called 'Battery Valley'. With a total investment of €1.5 billion (approximately RMB 12 billion), this facility is the third major battery production base to commence operations in the region, following ACC and Envision AESC. Construction of the Verkor factory began in November 2023, with an initial planned annual capacity of 16 GWh. The company aims to gradually scale up output to 50 GWh by 2030. Its first batch of battery cells is scheduled to power Alpine’s high-performance A390 model—a brand under Renault—starting in early 2026. According to the plan, by around 2027, the factory will supply lithium-ion batteries for approximately 300,000 electric vehicles annually. Public records show Verkor was founded in 2020 as a battery technology enterprise jointly initiated by the European Institute of Innovation & Technology’s InnoEnergy (EIT InnoEnergy), industrial giant Schneider Electric, and IDEC Group. Verkor’s shareholder roster includes Capgemini, Renault Group, EQT Ventures, Arkema, and other industrial and investment partners—with Renault holding roughly a 10% stake and serving as its primary customer. In 2021, Verkor established a strategic partnership with Renault, and in April 2023 signed a long-term supply agreement committing to deliver 10 GWh of batteries annually starting in 2026, scaling up to 20 GWh per year from 2030 onward—primarily for Renault’s C-segment and above vehicles, as well as the Alpine brand.

Renault-Backed Battery Factory Plans Lender Talks After Delays

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Verkor, backed by Renault, seeks debt flexibility following production delays at its Dunkirk plant. The situation underscores broader challenges facing Europe’s domestic EV battery industry amid high costs and Asian competition.

bloomberg

2026-10-01

Renault-Backed Battery Factory Plans Lender Talks After Delays

Renault-Backed Battery Factory Plans Lender Talks After Delays

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