The European Court of Auditors (ECA) warned that the ban on the sale of new petrol and diesel cars from 2035 could jeopardize Europe’s leadership, due to lack of competitiveness especially in battery manufacturing.
In a report released this Monday, the ECA highlights a possible clash between the European Green Deal and “industrial sovereignty” of the European Union (EU) with the focus on electric vehicles.
The ECA found that, despite significant public support, batteries manufactured in the EU “continue to have a much higher cost than expected”, affecting the competitiveness of European electric cars compared to other global producers, and also potentially “making European electric cars unaffordable for a large part of the population.”
Less than 10% of global battery manufacturing is located in Europe, the text highlights, with the vast majority produced in China.
The EU’s battery sector relies on imports of resources from countries outside the bloc, with which the EU does not have proper trade agreements: 87% of raw lithium comes from Australia, 80% of manganese from South Africa and Gabon, 68% of cobalt from the Democratic Republic of Congo, and 40% of graphite from China, the report from the institution adds.
The ECA also warns that vehicle charging infrastructure still faces many obstacles, both due to a lack of supply and a lack of a harmonized payment method.
