Automakers Are Finding That Europe's Mandated EV's Are Pushing Manufacturing to China

Europe’s quest to localize its electric vehicle industry is increasingly at odds with the economics of a China-dominated battery supply chain, as evidenced by a string of recent high-profile battery project cancellations. The continent’s EV adoption is soaring, but much of that is driven by battery materials and equipment procured from China.

 

As Automotive News highlighted in a recent report, European companies are now finding it simply too hard to decouple from that.

 

Last year, Porsche began scaling back production at its Cellforce battery division to focus on R&D. The reason? Manufacturing was no longer “economically viable,” the carmaker said.