Europe’s bid to build a homegrown battery industry to break China’s dominance in electric vehicles is failing.
The most high-profile setback yet came with the Chapter 11 bankruptcy of Northvolt, a Swedish startup whose backers include Volkswagen and BMW. Fallout is spreading across the region as EV demand wanes and local manufacturers struggle to master the technology. Eleven out of 16 planned European-led battery factories have been delayed or canceled, according to a Bloomberg News analysis.
Meanwhile, 10 of 13 projects in the region by Asian manufacturers such as China’s Contemporary Amperex Technology and South Korea’s Samsung SDI are on track. That suggests their grip on the sector will only increase, putting Western automakers at a competitive disadvantage when there’s a supply crunch or political conflict.
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