EU can sharply cut local battery prices with Made in Europe plan, T&E report says

Core Insights - The cost gap between EU-made batteries and those from China could decrease from 90% to around 30% with increased production in Europe, according to T&E [1] - The EU is set to propose the "Industrial Accelerator Act," which prioritizes locally manufactured products in key strategic sectors, including batteries and electric vehicles [2] - T&E's report indicates that improved manufacturing efficiency could reduce the cost gap to $14 per kilowatt-hour by 2030, translating to a potential savings of 500 euros ($590) for an average electric vehicle [3] Group 1 - The need for a domestic battery industry in Europe is emphasized as a safeguard against supply chain vulnerabilities, with local content requirements seen as essential to avoid issues similar to those faced by Northvolt [4] - The scaling up of production by companies like ACC, Powerco, and Verkor is crucial for narrowing the cost gap under EU local content requirements [4] - T&E advocates for the "Made in Europe" plan to include public support schemes such as EV tax rebates for both owners and corporate car schemes [5]