Europe has fallen too far behind in battery technology and should seek partnerships with Chinese groups instead of trying to set up a rival industry,the chair of French miner Eramet and the CEO of battery materials maker Umicore said,according to a Financial Times report on Tuesday.
Their comments come at a time when there is increasing acknowledgment within the European electric vehicle(EV)supply chain that cooperation with China is not only vital for reviving the struggling European battery industry but also offers immense opportunities to capitalize on the complementary strengths of both industries.
The predicament of the European EV battery industry is evident,with the collapse of Swedish manufacturer Northvolt serving as a stark illustration of the continent's shortcomings in battery technology research and development,manufacturing,and capital investment.In contrast,China has made significant advancements in the battery technology sector,establishing a mature and dynamic industry ecosystem.With groundbreaking innovations in battery materials and highly efficient large-scale manufacturing,China demonstrates a strong competitive edge.
China and Europe have a long-standing history of cooperation in the automotive industry.Decades ago,China embarked on a journey of collaboration with European giants like Volkswagen and BMW,which served as a crucial platform for accumulating automotive manufacturing expertise.Through these partnerships,China gained valuable automotive manufacturing expertise and gradually built up its own competitive edge in the industry.
Likewise,if the EU could emulate the strategic patience and pragmatism that China demonstrated in the past,and actively foster collaboration with China in the battery sector,it would stand a good chance of accelerating its own electrification transformation by leveraging China's robust industrial ecosystem.
The calls from European industry insiders underscore the realistic possibility of China-EU cooperation in addressing the challenges posed by manufacturing competition.At its core,the competition between EU and Chinese manufacturing represents a restructuring of global production relations.The key to cooperation lies not in eliminating competition but in channeling it toward mutual benefit through institutional innovation.
For instance,if China and the EU can achieve breakthroughs in cooperation on issues like battery recycling,industrial internet standards,and near-zero-carbon steel,these new models could leverage the technological,resource,and market strengths of both China and the EU,conducive to establishing a mutually beneficial balance in the face of intense global competition.
The road to China-EU cooperation is not without its challenges.To achieve meaningful cooperation goals,both sides need to break free from traditional game-playing thinking in terms of mutual trust,profit distribution,and coordination on rules.The first crucial step in this process is to transcend the"threat narrative"and actively seek out win-win pathways for collaboration.
Some in the EU perceive the rise of Chinese manufacturing as a competitive threat,viewing China's growth in this sector with skepticism and concern,which significantly obstructs the potential for bilateral cooperation.However,it is important to recognize that China's entry into the European market is not aimed at seizing resources or jobs;rather,it is motivated by a genuine pursuit of mutually beneficial outcomes.To unlock the full potential of this partnership,it is essential to overcome mutual distrust through enhanced dialogue,deeper understanding,and a commitment to collaborative problem-solving.
In the current context of an increasingly complex global economic landscape and the rising protectionism against global trade,the establishment of a new cooperation model in the EV battery supply chain between China and the EU holds far-reaching significance beyond the industrial level.As two of the world's major economies and new-energy vehicle markets,cooperation between China and the EU will inject a powerful impetus into the development of the global new-energy vehicle industry,resist the impact of unilateralism,and bring greater certainty to the achievement of global carbon neutrality goals.
