In 2019, France and Germany agreed to pump billions of euros into a plan to boost Europe’s battery industry and catch up with China and the U.S. Five years later, that effort is running out of steam.
As electric-vehicle sales slow, companies including Volkswagen, Stellantis and Mercedes-Benz are scaling back or refocusing battery projects. Chinese manufacturers are slashing costs and the U.S. is drawing away investment with lucrative subsidies.
China already has excess battery-making capacity, can make cells at a fraction of the cost it takes in Europe, and has a head start on the next generation of cell technology. All of this means the continent risks falling further behind in the race to build and power the EVs of the future.