Belgium: A new report stated that Europe could end its reliance on China for electric car batteries by 2030, but only if it keeps pace with Mr. Joe Biden’s $369 billion (£298 billion) green subsidy spree.

According to a report released by the renewable energy advocacy group Transport and Environment, the EU was on track to produce enough lithium-ion battery cells by 2027 to meet demand while cutting China out of supply chains. “Li-ion” batteries are rechargeable and used in consumer electronics and electric cars.

The study discovered that Europe’s reliance on China for battery metal refining and processing will be dramatically reduced, with more than half of Europe’s refined lithium demand expected to come from European projects by 2030.

The T&E report pointed out that two-thirds of Europe’s demand for cathodes, which are also used in batteries and contain critical raw materials, can be produced on the continent by 2027, with projects such as Umicore in Poland and Northvolt in Sweden contributing.

The authors of the study further warned that companies could still move projects planned for Europe to the US, tempted by the tax benefits and other subsidies provided by the IRA for localising battery supply chains in the US.

Ms. Julia Poliscanova, Senior Director for vehicles and e-mobility at T&E, remarked that “today, half of the lithium-ion battery cells used in the EU are already made there. But the Inflation Reduction Act has changed the rules of the game, and Europe needs to put more money on the table or risk losing planned battery factories and jobs to America.”

WORLD ROUNDUP: US President appoints human rights envoy for North Korea