Why Europe invests in the production of batteries?

In October of 2017 created by the European Alliance battery (Batteries Alliance), which aims to become the basis of industrial policy and to make the EU a world leader in innovation and digital economy. In may 2018 Strategic plan approved by the development and production of batteries in Europe.

For its implementation, the EU plans to invest some 20 billion euros in new factories and research and development. Implementation of these measures will lead to an increase in the share of the EU on the battery market up to 250 billion euros a year in 2025 [1].

In world production of automobile batteries lead Asian companies that make up more than 90% of current world total. Why the EU is stepping up investment in production of batteries?

For Europe the production of batteries is a strategic priority in the transition to clean energy and to improve the competitiveness of the automotive sector. The automobile industry provides jobs for 12 million people and 4% of EU GDP, is the largest investor in research and development [2].

According to experts, the battery will be a large part of the value added in the car of the future and present the same importance for the automotive industry in the 21st century as the internal combustion engine in the 20th.

The EU expects the exponential growth of storage batteries in connection with the development of hybrid and electric vehicles, energy storage systems and renewable sources of energy. International competition in the market of rechargeable batteries in sales, marketing and research is very large. Investing in the industry of batteries Europe seeks to preserve as much of the added value and provide control over the creation of new technologies [3]. Currently in the production of batteries are the most used lead, sodium, Nickel and lithium technologies. Different battery technologies serve different segments of the market, due to their different characteristics and ability to adapt to client requests. The EU developed a common strategy for all battery technologies are provided with equal support for all current and future battery technology.

In the industry of batteries in the EU there are 30 000 people in all 14 member States. The formation of a complete value chain in the manufacture of batteries can provide about 4-5 million new jobs, and investments in R & d, backed by a strong scientific base, will ensure Europe's leadership in every stage of the value chain of batteries [4].

Thus enhancing the battery industry, the EU aims to ensure steady economic growth, combined with high standards of environmental protection.

Authors:

Lemeshevsky V.M., General Director of 1AK-GROUP Holding

Vertai S.P., PhD of Economic Sciences, Associate Professor, Deputy General Director for Marketing of 1AK-GROUP Holding