Nearly 70% of planned battery factory capacity in Europe is at risk

European transport and environment association Transport & Environment (T&E) estimates that up to 68% of planned European battery factory capacity is at risk, due to recently introduced support for battery storage in the United States, competition from China and other factors. To support the growth of Europe’s battery supply chain, Europe must speed up permitting processes and provide appropriate investment incentives, according to the association.

According to T&E’s analysis, a total of 50 new battery factories with combined annual production capacity of 1.8 TWh are currently planned in Europe. However, a large part of this capacity is at risk, according to the association, with projects representing a total of 1.2 TWh identified as facing medium or high risk.

According to the published analysis, Germany, Hungary, Spain, Italy and the United Kingdom have the most projects at risk.

“Tesla in Berlin, Northvolt in northern Germany and Italvolt near Turin are among the projects that represent a risk of losing the largest volumes of planned new capacity,” T&E said.