The document, cited by Portal news agency, is intended to form the basis for discussions on Europe’s economic security at the EU summit in Granada, Spain, in early October. The document states that Europe will need energy storage to meet its target of zero greenhouse gas emissions by 2050 due to intermittent wind and solar energy.
This will increase EU demand for lithium-ion batteries, fuel cells and electrolysers needed in hydrogen technology by ten to 30 times in the coming years. “Without the implementation of effective measures, by 2030 the European energy ecosystem could end up in a dependence on China that is different, but similar in severity, to that of Russia before the invasion of Ukraine,” he said.
The EU has a strong position in electrolyser production, but relies heavily on China for fuel cells and lithium-ion batteries, which are needed for electric cars.
There is also a risk of falling behind in other areas
Lithium-ion batteries and fuel cells are not the only areas where the EU is vulnerable, the paper says. A similar scenario could exist with digital technologies. Forecasts indicate that demand for sensors, drones, servers, storage devices and data transmission networks will increase sharply this decade. The EU has a relatively strong position when it comes to networks, but has significant weaknesses in other areas.
Significantly higher tariffs on Chinese electric cars possible
Meanwhile, EU Internal Market Commissioner Thierry Breton believes import duties on Chinese-made electric cars could be doubled. In light of the competition investigation into Chinese electric cars announced by Commission President Ursula von der Leyen, Breton said Sunday on French television channel LCI that similar investigations “often lead to tariff increases of ten to 20 percent.” However, he does not want to pre-empt the results of the investigation.
Von der Leyen announced on Wednesday a competition investigation into market distortions caused by Chinese subsidies for electric cars. World markets are currently being flooded with “cheaper Chinese electric cars”, von der Leyen said at the EU Parliament in Strasbourg, adding: “This is distorting our market”.
Currently ten percent import tax
If the Commission’s investigation concludes that Beijing is violating the rules of international trade law, it could impose punitive tariffs on Chinese vehicles – which would risk a trade war with China.
In an interview with LCI, Breton said that ten percent import duties are now being charged on Chinese electric cars in the EU. In the US, for example, it is 27.5%, she added. As regards the outcome of the process, the Internal Market Commissioner has said several times: “We will see”.