The European Union report says the region could rely on Chinese batteries the way it relied on Russian energy in the past.
European Union (EU) leaders will meet in Spain on October 5. Reuters cited a report to be discussed at the event, showing that the EU could depend on lithium-ion batteries and fuel cells made in China until 2030.
The report explains that renewables, such as wind and solar, are intermittent in nature, so the EU needs to find ways to store energy to meet its 2050 carbon neutrality target.
“This will lead to a surge in demand for lithium-ion batteries, fuel cells and electrolysers, which is expected to increase 10-30 times in the coming years,” the report said, prepared by the Council of the European Union.
The EU is well positioned to produce electrolysers, with more than 50% of the global market share. However, it relies on China for fuel cells and lithium-ion batteries essential for electric vehicles.
Workers at a lithium-ion battery factory in Zhejiang (China). Photo: Reuters
China’s growing economic influence globally will prompt European leaders to discuss proposals from the European Commission to reduce the risk of the region becoming too dependent on China. The EU will also need to diversify into Africa and Latin America.
"Without drastic measures, Europe's energy sector will be dependent on China from now until 2030. The nature is different, but the severity is similar to the dependence on Russian energy before the war in Ukraine," the report said.
According to the European Commission (EC), in 2021, the EU bought more than 40% of its gas, 27% of its oil and 46% of its coal from Russia. The suspension of purchases of most of these goods from Russia has caused an energy crisis in the EU, causing inflation to skyrocket, forcing the European Central Bank (ECB) to raise interest rates sharply in recent times. The EU's economic growth has therefore also been held back.
Beyond batteries, the EU is vulnerable in many other areas. “A similar scenario could play out in digital technology. Forecasts show that demand for digital services such as sensors, drones, servers, storage devices and data networks will also skyrocket this decade,” the report said.
Ha Thu (according to Reuters)
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