EU can sharply cut local battery prices with Made in Europe plan

A new report by transport and environment group T&E (Transport & Environment) says the European Union could significantly reduce the price gap between locally produced batteries and cheaper Chinese imports by scaling up domestic production under its upcoming “Made in Europe” strategy. Currently, EU-made batteries are about 90% more expensive than Chinese ones. However, with improved manufacturing efficiency, lower material waste (scrap rates), better labor expertise, and automation, the cost gap could fall to around 30% by 2030. That would reduce the difference from a potential $41 per kilowatt-hour to about $14 per kilowatt-hour—equivalent to roughly €500 per average electric vehicle. Public incentives could lower this gap further, making it a manageable “sovereignty premium” to protect Europe’s supply chains. The EU is preparing to introduce its Industrial Accelerator Act, which would prioritize locally manufactured products when public funds are used. The plan would apply to key sectors such as batteries, solar and wind power, hydrogen, nuclear energy, and electric vehicles. While some automakers warn that local content rules could make batteries too expensive and hurt competitiveness, T&E argues that building a strong domestic battery industry is essential to avoid dependence on China and protect against export restrictions on critical minerals. The report states that companies like ACC, Powerco, and Verkor would need to scale up production for costs to fall. T&E also recommends that the “Made in Europe” plan include electric vehicle tax rebates for individuals and corporate car programs to further support the sector.