If the EU speeds up the expansion of its own battery production, it can drastically reduce the cost disadvantage compared to China. That is the conclusion of a report from the transport and environmental organization T&E.

According to analysts, the current price gap of around 90 percent could shrink to about 30 percent by 2030. In concrete terms, the difference per kilowatt-hour could fall to 14 dollars. Without support measures, it might otherwise remain at 41 dollars. For a typical electric car, this means a price difference of roughly 500 euros.

Lower costs can be achieved through more efficient production, greater automation, fewer defects, and accumulated know-how. But to make this happen, local content rules and support from the Made in Europe initiative are necessary.

The European Commission is working on the Industrial Accelerator Act. This law would give preference to European products when public money is used in strategic areas like batteries and electric vehicles.

For T&E, building a strong European battery industry is about more than just price. In practice, it is also a question of industrial sovereignty, especially given the risk that China could restrict exports.