By Mathias de Rozario and Amir Orusov
May 11 (Reuters) – Countries in the European Economic Area and Switzerland have committed almost 200 billion euros ($235 billion) to their electric vehicle (EV) ecosystem, research group New Automotive said on Tuesday.
The investments underline the scale of the region’s push to cut its reliance on China, which the International Energy Agency said earlier this year made more than 80% of all batteries produced in 2025, including those used outside EVs.
The commitments include 109 billion euros in the battery supply chain, 60 billion euros in EV manufacturing, and between 23 billion and 46 billion euros in public charging networks, with more than 1 million public charge points deployed.
“Europe now produces batteries for roughly one in three EVs sold domestically, and announced capacity could meet future demand if fully utilised,” New Automotive said.
Germany accounted for almost a quarter of the region’s investment, making it the largest national hub in Europe’s EV sector, according to New Automotive.
“The country anchors both domestic production and wider European value chains with leading OEMs transitioning at scale alongside major international battery manufacturers,” it said.
Campaign group E-Mobility Europe said the investments already support more than 150,000 jobs, with another 300,000 possible if all announced projects go ahead.
Analysts and economists said Europe would still need subsidies, protection and more stable energy costs to compete globally.
“Europe’s automotive production has always been mostly concentrated in a few large countries,” said Rico Luman, senior economist at ING Research.
Researchers said investment had held up despite softer regulation, helped by rising oil prices and a growing range of electric models.
The European Commission unveiled a plan in December to drop the European Union’s effective ban on new combustion-engine cars from 2035 after pressure from the region’s auto industry, marking the bloc’s biggest retreat from its green policies in recent years.
($1 = 0.8510 euros)
(Reporting by Mathias de Rozario and Amir Orusov in Gdansk, editing by Milla Nissi-Prussak and Matt Scuffham)
Comments