Plan for the emergence, competitiveness, and resilience of an EU battery ecosystem — Leveraging combined use of local content policies and of new public aids schemes
The current state of Europe’s battery sector, critical to achieving the decarbonization goals of the automotive industry, requires a swift, targeted, and ambitious shift in public policy.
This Policy Brief aims to guide decisions to support the emergence, competitiveness, and long-term resilience of the European battery industry. It advocates for a dynamic, time-calibrated package of instruments that blends and binds local content tools with (i) financial support measures (for capacity investment or production), (ii) demand-side leviers, and (iii) material, end-of-life, and eco-design regulations.
Following the identification of three key weaknesses that could undermine the impact of a European action plan, IMT proposes a progressive and systemic strategy structured around three pillars:
- A coherent combination of regulatory, fiscal, financial, and labelling instruments, incorporating sustainability and local content criteria, starting with the introduction of a “Made in Europe” label;
- A phased and realistic roadmap, leveraging production support and local content tools, in alignment with industrial timelines and the scaling-up of production capacities;
- A comprehensive approach to the battery value chain, extending beyond cell manufacturing to include critical segments such as CAM, PCAM, and recycling.
The goal is to offer strategic insights for a more integrated European industrial policy, essential to securing and sustaining the continent’s decarbonization and circularity ambitions.