The European Union (EU) will, next month, propose regulations to ensure batteries marketed in the region are greener throughout their lifecycle, according to Bloomberg. EU will require responsible sourcing of raw materials, using clean energy in production, reducing hazardous substances, boosting energy efficiency, and improving durability to make batteries greener.
- Electric vehicles are becoming more popular in Europe than other major markets, and the EU will become the second global market for batteries.
- EU’s battery market value is projected to reach 250 billion euros or $300 billion by 2025
- Germany and France, home to major car manufacturers, are leading the European battery industry’s push.
- The new standards will apply to all types of batteries and battery chemistry, including those sold apart or contained in products.
- The EU has already invested billions in its Battery Alliance project to compete with Asia, Europe’s only current provider of EV batteries.
- Last year, the EU approved 3.2 billion euros for a project spanning seven countries and including industry giants such as BASF SE and carmakers BMW AF and PSA Group.
- The EU’s electric future is part of the Green Deal, which seeks to meet the goal of zeroing-out greenhouse gases by 2050 by cutting emissions from transport by 90%
- Europe’s growing EV industry is attracting battery makers, including China’s SVolt Energy Technology Co., Contemporary Amperex Technology Ltd, and Panasonic Corp.
EV makers’ stocks are mixed. QS: NYSE is up 22.16%, VOW is down 2.67%, BMW is up 0.51%