Europe’s EV Battery Plans Falter as China Strengthens Its Hold

The collapse of European battery projects, including Northvolt's bankruptcy, leaves automakers increasingly reliant on Asian manufacturers.

Northvolt, once a flagship European battery startup backed by Volkswagen and BMW, has filed for Chapter 11 bankruptcy after accumulating $5.8 billion in debt.
Twelve out of 16 planned European-led battery factories have been delayed or canceled, while 10 of 13 projects led by Asian companies, including China's CATL, are progressing.
The failure to establish a domestic battery supply chain threatens Europe’s automotive industry, with potential factory closures and job losses as automakers consider relocating production.
China dominates the global battery market, producing 80% of lithium-ion batteries and housing six of the top 10 EV battery makers, giving it a competitive edge in pricing and technology.
European automakers face challenges scaling up production and meeting EV demands, with some walking back electrification plans and seeking partnerships with Asian manufacturers for cost-efficient solutions.