Unless it takes strong measures, the European Union could become as dependent on China for lithium-ion batteries and fuel cells as it was on Russia for energy before the Ukraine war, by 2030, a document prepared for EU leaders said.China will be one of the main agenda items at the meeting of EU leaders in Spain on October 5. Concerned about China’s increasing global assertiveness and economic weight, leaders will discuss the European Commission’s proposals to reduce the risk of Europe becoming overly dependent on China and the need to diversify into Africa and Latin America.
The EU may become dependent on China for energy
A report obtained by Reuters states that due to the intermittent nature of renewable energy sources such as solar and wind, Europe will need ways to store energy to meet its goal of net zero carbon dioxide emissions by 2050. The report prepared by Spain’s EU presidency said, “This situation will rapidly increase our demand for lithium-ion batteries, fuel cells and electrolyzers, which is expected to increase 10 to 30 times in the coming years.”
While the EU holds a strong position with more than 50 percent global market share in the intermediate and assembly stages of electrolyzer production, it remains heavily dependent on China for fuel cells and lithium-ion batteries, which are vital for electric vehicles. The report stated that lithium-ion batteries and fuel cells are not the only areas where the EU is vulnerable. A similar scenario for the EU may also arise in the field of digital technology. The demand for digital devices such as sensors, drones, data servers, storage equipment and data transmission networks is predicted to increase sharply this decade.
It is stated that by 2030, this external dependence could seriously hinder the productivity increases urgently needed by the European industrial and service sector and disrupt the modernization of agricultural systems necessary to combat climate change.
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