Deloitte warns Europe faces €10.5 billion loss in EV battery profits

A new report by Deloitte, the 'Battery Maturity Assessment,' warns that the European automotive industry could lose up to €10.5 billion ($12 billion) in profits to Asia by the end of the decade due to a chronic dependency on Far East EV battery cells.

With nearly 30 million electric vehicles expected to roll off European production lines over the next four years, the continent will require approximately 2,000GWh of battery capacity. The analysis suggests that while Europe is making progress in downstream assembly, such as module and battery pack integration, it remains weak in upstream and midstream sectors.

Key bottlenecks identified include material refinement and cell production. The report notes that material supply accounts for 50–60% of the value pool, while cell production accounts for 15–30%. Currently, the phase between cell production and module manufacture is viewed as a critical weak link in the European value chain. To ensure long-term competitiveness and industrial sovereignty, the report emphasizes the need to stabilize regulatory policies and master large-scale production processes.