Core Viewpoint - The article discusses the European Union's ongoing support for the lithium battery industry despite slower-than-expected electric vehicle (EV) market growth, highlighting significant funding initiatives and regulatory measures aimed at fostering local battery production and reducing dependency on external supply chains [2][10]. Group 1: EU Funding Initiatives - The EU has launched the "IF24 Battery" program with a total budget of €1 billion (approximately 7.9 billion yuan) to support EV battery manufacturing and clean energy technologies [2]. - Recently, the EU Commission announced a total of €852 million (about 7.16 billion yuan) in funding for six EV battery projects [3]. - These projects are expected to collectively achieve a production capacity of approximately 56 GWh by 2030 [8]. Group 2: Specific Projects and Investments - The ACC project in France will add five NMC battery production lines with a total capacity of 15.7 GWh [5]. - Verkor's "AGATHE" project aims to double the capacity of its Dunkirk battery plant from 8 GWh to 16 GWh [6]. - LG Energy's project in Poland plans to establish a production line for 46 series cylindrical cells with an annual output of 11.5 GWh [6]. Group 3: Strategic Material Investments - The EU plans to invest €28 billion (approximately 229.4 billion yuan) in 60 strategic raw material projects to enhance local production capabilities and reduce reliance on external sources [8]. - The EU has identified 47 strategic projects focused on lithium, cobalt, nickel, and rare earths to strengthen its supply chain resilience [8]. Group 4: Regulatory Measures Against Chinese Competition - The EU is implementing regulations to limit the entry of Chinese lithium battery supply chains, including the "Battery Regulation" and "Critical Materials Regulation" [10][12]. - New legislation is expected to require a significant percentage of local content in EV batteries by 2025, with a target of 40% local production of key components by 2030 [14]. Group 5: Challenges and Opportunities for Chinese Companies - Despite the tightening regulations, Chinese companies like CATL and others are establishing a foothold in Europe through localized production and technological innovation [15][16]. - CATL's Hungarian factory operates under "zero carbon" standards and has received €320 million (approximately 2.5 billion yuan) in EU subsidies for low-carbon technology research [16].