The trade war between the US and China may have been temporarily ceased. However, Europe has discovered that the Eastern titan's much stronger approach of the top-down rule has been very effective in achieving one common target that both powers share, that is, to get more drivers behind electric cars wheels. A previous report claims that European cars are lagging behind China.
China has been providing incentives to EV makers and manufacturers to develop more electric cars. In fact, the powerful Southeast Asian country is also providing customers financial push to purchase them. Meanwhile, Europe is behind China when it comes to assisting its auto industry evolves from customary vehicles to electric vehicles. However, there seem to be a brighter future waiting for European cars if the most recent report from Detroit News is to be believed.
According to the report, the EU is currently preparing a $113 billion package it allocated to spend on developing a supply chain for battery packs, specifically, lithium-ion. Through this Europe could be more equipped to compete with other countries, especially China, in the bid for supremacy in the electric car industry. This planned supply chain will really go a long way in ensuring that the European auto industry, which currently employs around 13.8 million people can keep up with the pace set by China in its aim of building not only an improved electric car but also to enhance the electric vehicle industry.
At present, China is leading in the race when it comes to producing electric cars as well as in the auto industry as a whole, and, European leaders are not happy about this. President Emmanuel Macron of France restated that stand last February when he was quoted saying that he could not be happy in a condition where 100 percent of the batteries needed to power his electric vehicles are sourced from Asia. However, despite being left behind, Europe could still catch up.
According to James Frith, a BloombergNEF in London analyst, Europe has already made a commitment and at present are in a solid and strong position. With batteries becoming an in-demand and staple commodity in the electric vehicle industry, car manufacturers who plan for electrification are securing their own battery supplies for their future lineups. The European government-backed kick start is an attempt to make sure that more power of that $113 billion goes to the members of the EU.
This includes Poland, France, and Germany. According to Reuters, Volkswagen recently stated that it would purchase around $56.57 billion worth of battery cells from five various suppliers.
