Europe faces battery dependency risks as Asian firms control production

A new analysis by Deloitte warns that Europe’s electric vehicle transition is at risk due to a heavy reliance on Asian battery technology. According to the report, “Europe’s Battery Industry at a Crossroads,” the share of EV batteries produced in Asia rose from 70 percent in 2024 to 77 percent in 2025, while Europe holds only 13 percent of global cell production.

Even production facilities located on European soil are largely controlled by Asian corporations, including CATL, LG Energy Solution, and Samsung SDI. The report indicates that 98 percent of European production capacity is currently under Asian ownership. This dependency creates a strategic risk as Europe attempts to shift away from fossil fuels to achieve energy independence.

Economically, the lack of domestic production could result in significant losses. Deloitte estimates that European companies face a loss of 10.5 billion euros in direct cell profits over the next four years. When accounting for imported raw materials, facilities, and foreign labor, the total lost value creation could reach between 100 billion and 150 billion euros by 2030.