Overview
- The Deloitte study, released Monday, found that 77 percent of the battery cells fitted in European electric vehicles in 2025 were made in Asia.
- Only about 13 percent of cell production takes place in Europe while Asian firms control roughly 98 percent of European production capacity.
- Europe’s cell capacity grew to about 920 GWh in 2025, but Deloitte warns that weak local manufacturing and foreign control will leave European firms missing about €10.5 billion in profits over the next four years.
- Companies told Deloitte that the main barriers are a shortage of precursor materials, the costly and complex scaling or industrialization phase, and limited local manufacturing experience, prompting calls for multi‑year investment and targeted support.
- If Europe does not strengthen upstream material processing and domestic cell making, automakers face pressure on vehicle range, performance and price and broader value losses that Deloitte says could rise far above the €10.5 billion figure.