Europe's EV battery sector faces €10 bn profit loss to China, Deloitte warns

A Deloitte study finds that Europe remains heavily dependent on China for electric‑vehicle batteries, with 77 % of battery cells sourced from Asia and only about 13 % produced in Europe, most of which is controlled by Asian firms such as CATL. The report notes that European investment is focused on downstream module assembly, which adds only 20‑25 % of the total value, while upstream activities like raw‑material refining and cell production account for up to 90 % of the market.

If Europe does not develop a complete domestic battery supply chain, the study estimates that manufacturers could forfeit more than €10 billion in profits by 2030. The continent is projected to build around 28 million new electric cars requiring roughly 2 000 GWh of battery capacity, underscoring the urgency for state support and a coordinated European strategy to reduce reliance on Chinese suppliers.