May – 2018 NEWSTHE NEWSLETTER OF THE ASSOCIATION OF EUROPEAN AUTOMOTIVE AND INDUSTRIAL BATTERY MANUFACTURERS NEWS The initiative by the European Commission to form the EU Battery

EU Battery Alliance – Strengthening Europe’s economy

THE NEWSLETTER OF THE ASSOCIATION OF EUROPEAN AUTOMOTIVE AND INDUSTRIAL BATTERY MANUFACTURERS

NEWS

The initiative by the European Commission to form the EU Battery Alliance is an important step in the right direction to strengthen Europe as the main location for battery production while increasing international competitive-ness. The battery market is already relevant in size, serving different market segments (automotive, energy storage, motive power, telecommunications, etc.) and is expected to experience an exponential growth with the further development of hybrid and electric ve-hicles and energy storage to support renewa-ble energy. Taking into account the dimensions of this market and its strategic importance, it is paramount for Europe to play an important

role in each part of the battery value chain. The EU Battery Alliance must address the key issues related to the battery market, with par-ticular regards for the development of a coher-ent legislative environment which we are cur-rently lacking.

Battery technology: Key technology for future technologiesBatteries, which already contribute massively to the decarbonisation of the EU economy, are key solutions for decisive present and future technologies. The entire battery industry di-rectly employs more than 30.000 people across 14 member States. Multiple SMEs and larger

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suppliers are involved in supply chains. Differ-ent battery technologies (lead, lithium, sodium and nickel-based) serve different market seg-ments, thanks to their different characteristics and ability to adapt to the requests of the cus-tomers. However, the European Commission’s approach is restricted to stimulating and strengthening the technology of lithium batteries solely, risk-ing to look at only one part of the entire battery market. For Europe, in order to benefit from the economic and social advantages that are si-multaneously provided through battery tech-nology, it is crucial to improve the investment prospects for the battery sector as a whole.

One strategy for all battery technologiesEUROBAT therefore has been promoting the development of a “2030 battery strategy for Europe”, which calls for an equal backing of all existing and future battery technologies. From EUROBAT’s point of view, the EU Battery Alli-ance can thus only be successful, if it does not solely focus on one battery technology only, taking into account both the current market and future developments.

All battery technologies play an important roleA variety of battery chemistries and technolo-gies already exists today: lead, lithium, sodium and nickel batteries. They all serve different purposes regarding the performance, capa-bilities and fields of application. Hence, each battery technology has a segment in which it plays a key role: From innovations such as the start-stop-technology to different levels of hy-bridisation and electrification of engines for cars, trucks and buses – a world without a high diversity of battery technologies would cur-rently be unthinkable.

In the European Commission’s proposal for the new energy market design shifting to a complete coverage of the electric grid with renewable energies, batteries are finally rec-ognised to account for a further reduction of CO2 emissions due to their contributions to the achievement of the EU climate goals. Here as well a variety of battery technologies serve as devices for storage and balance of electricity in the grid, while providing consumers with a state-of-the-art energy mix and a stable power supply.

Furthermore, the battery industry aims to en-sure sustainable growth in combination with high environmental protection standards and particular attention on recyclability. As a mat-ter of fact, all lead batteries are collected by professional businesses and are subsequent-ly recycled. Moreover, batteries prove to be products that operate in a closed loop.

In the past, the EU has initiated various re-search-, innovation- and development pro-grammes, e.g. Horizon 2020, Batstorm or the technology and innovation network SNET. Pro-jects like these are fundamental to the future of all battery technologies. EUROBAT deeply appreciates the EU’s programmes, which are highly important due to its positive effects on technological advance in the battery sector. Nevertheless, they should always take into ac-count the existing landscape of EU battery pro-duction base and be linked to other policy ini-tiatives in a coherent way.

EU battery technology needs a coherent legislative frameworkCurrently, the legislative overlap between several EU-regulations, such as the Battery Di-rective, the End-of-life Vehicle Directive or the REACH Regulation leads to an unnecessary doubling of provisions. For instance, overlap-ping legislation of End-of-Life Vehicle and Bat-tery Directives result in procedural and busi-ness uncertainty, thereby weakening an entire industry branch. EUROBAT hence calls for an urgent review of EU legislation that affects the battery industry with focus on ameliorating co-herence and verifying the necessity of specific legislative norms.

By supporting the EU Battery Alliance, EURO-BAT aims at strengthening the competitiveness of Europe’s battery industry. However, these goals require a European legislative frame-work that facilitates the development of all ex-isting and future battery technologies without jeopardizing or even banning some of them. This will ultimately contribute to the main goal of strengthening Europe as business location for an independent battery industry, which in turn will secure and create jobs in Europe.

ImprintPublisher EUROBAT (Association of European Automotive and Industrial Battery Manufacturers)Responsible according to the press law: René Schroeder, EUROBAT Executive DirectorTelephone: + 32 2 761 16 53Website: www.eurobat.org | email: [email protected]: eurobat_org | LinkedIn: EUROBAT Association