Core Viewpoint - European companies are significantly lagging behind China in battery technology and must seek collaboration with Chinese firms to develop a local battery industry [1][3][4] Group 1: Industry Challenges - The bankruptcy of Swedish battery manufacturer Northvolt in March 2023 has severely impacted Europe's ambition to establish a domestic battery industry [1][3] - Executives from Eramet and Umicore believe that Europe cannot develop a fully autonomous battery industry and must embrace cooperation with Chinese companies [1][3] - Market research indicates that completely decoupling from China is unrealistic for the European battery industry [3][4] Group 2: Collaboration Opportunities - Chinese companies are already investing in Europe, forming partnerships with local firms, such as CATL's €4.1 billion investment in a battery factory in Spain [3][4] - Executives from European firms suggest that instead of imposing tariffs on Chinese companies, Europe should encourage collaboration to localize production [1][3] Group 3: Market Dynamics - China supplies approximately 80% of the world's lithium-ion batteries, with six out of the ten largest electric vehicle battery manufacturers being Chinese [4] - The challenges faced by European battery manufacturers, including design flaws and production scalability issues, have been highlighted by industry leaders [4]