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Europe, USA and China, known as the top three automobile economies of the world, are fueling up the competition to dominate the global electric car battery market, in line with the surging growth of the electric car markets.\u00a0Europe and US, in particular, are racing fast to outrun Asia.<\/span><\/p>\n <\/p>\n | <\/span>\u201cEurope needs a strong ecosystem for the battery industry,\u201d said CEO of Northvolt<\/strong><\/span><\/p>\n <\/p>\n European startups for electric car batteries are emerging as a dark horse in the global markets.\u00a0Despite the prolonged situation with COVID-19, European latecomers in electric car battery industry are expanding their investments, guided by EU\u2019s consistent determination for powerful green policies and the major car manufacturers\u2019 unwavering road maps to launch electric cars.\u00a0The most notable is Northvolt, a Swedish startup that had received over KRW 4 trillion in funds since its establishment in 2016 by Peter Carlsson, a former executive at US Tesla Inc.<\/span><\/p>\n <\/p>\n Bloomberg recently published an interview (January 22 local time) of Peter Carlsson, the CEO of Northvolt, who is striving to shift the balance of battery-making power from Asia to Europe.\u00a0Peter Carlsson said, \u201cLast year we were able to recruit almost 500 new employees, raise a lot of capital, design product plans, and more. Production of electric car batteries will begin at Skelleftea factory in Sweden at the end of 2021,\u201d in this interview.\u00a0In addition to installing equipment in the Skelleftea factory, Northvolt is also working on a large buildup of capacity for energy storage solutions.<\/span><\/p>\n <\/p>\n They have already received a number of important orders. That means the company’s looking at a large expansion in Gdansk, Poland, where they assemble battery modules. At the same time, the company has a team in Germany that will build Northvolt Zwei, a joint venture with VW.<\/span><\/p>\n <\/p>\n \u201cA continued trend along the same line as 2020. You\u2019ll also see more effects of big stimulus packages such as the EU\u2019s green deal. That package is a lot about driving investments toward a green transition\u201d, said Peter Carlsson.\u00a0He also mentioned that the dynamics have definitely changed, from Chinese dominance with Europe paling in comparison to a situation where there is actually more investment in Europe than in China, and suggested that the biggest near-term bottleneck will be access to competence for these initiatives.\u00a0Lastly, he emphasized the importance for Europe to build a strong ecosystem with everything from innovation to production and recycling.<\/span><\/p>\n <\/p>\n | <\/span>President Joe Biden plans to replace Government fleet with American EVs<\/strong><\/span><\/p>\n <\/p>\n Recently President Joe Biden announced his plans to replace government fleet with US electric vehicles, in a press conference in the White House on January 25 after he signed \u2018Buy American\u2019, an executive order obliging the preferential purchase of American goods and services.\u00a0As of 2019, the government fleet of the US federal government reaches 650,000 vehicles, according to General Services Administration.<\/span><\/p>\n <\/p>\n \u201cThe federal government also owns an enormous fleet of vehicles, which we\u2019re going to replace with clean electric vehicles made right here in America, by American workers,\u201d Biden said during a briefing Monday announcing his ‘Buy American\u201d executive order.\u00a0One of the conditions that the President proposed was that it has to be electric cars made in US with at least half American parts.\u00a0He also promised to help \u201ccreate 1 million new jobs in the auto sector.\u201d<\/span><\/p>\n <\/p>\n At the same time, the investments in lithium ion battery are also surging in the US. On January 26 (local time), WSJ reported that Sila Nanotechnologies, a startup that produces silicon-based battery anodes, acquired new investments worth USD 590 million (approximately KRW 650.4 billion).\u00a0The company plans to spend this fund to build a production plant related with battery materials.<\/span><\/p>\n <\/p>\n Another battery startup, Romeo Power, and a Canadian mining company called Lithium Americas were listed in the US stock market to secure investment funds.\u00a0Regarding this investment trend, industry officials and the US congressmen are calling for lower dependence over China in order to reduce electric car and electric car battery prices and to stay competitive.\u00a0Currently, China produces approximately 70% of the global lithium ion batteries, and takes high market shares in the production of related materials such as lithium and graphite.<\/span><\/p>\n <\/p>\n Biden prioritized securing supply chains in the US in order to accelerate the exodus of the automobile industry from gas-powered vehicles.\u00a0Regarding this, Benchmark Mineral Intelligence, a British market survey agency, forecast that the US battery production capacity will rapidly increase in the next 10 years from around 60 GWh in 2020 to 383 GWh by 2030.<\/span><\/p>\n <\/p>\n | <\/span>Chinese Government Extends EV Subsidies by 2 Years<\/strong><\/span><\/p>\n <\/p>\n Meanwhile, the Chinese government is strengthening its policies to nurture domestic EVs and EV battery industries.\u00a0They raised the goal of EV proportion from 20% to 25% by 2025, and set up the goals of raising the proportion of EVs, HFCVs and PHEVs to 50% by 2035, and ban gasoline and diesel engine vehicles.\u00a0To this end, they decided to not only extend the subsidies upon purchase of an electric vehicle by 2 years to 2022, but also introduced a waiver of the sales tax.<\/span><\/p>\n <\/p>\n Researchers Park Seung-hye and Han Su-jin of Hana Financial Investment forecast that, \u201cThere is still a substantial gap for the EV penetration rate to reach 20% EV penetration rate, demanded by the New Energy Vehicle (NEV) Industry Development Plan (2021 – 2035), so there would still be high growth potentials for the EV market,\u201d in a report dated January 22.<\/span><\/p>\n <\/p>\n Moreover, Chinese battery makers including CATL started widening the gap with Korean counterparts, also known as\u00a0K-Batterries, through aggressive investments and order placements. It is known that CATL has increased the domestic market share up to 50% by initiating battery supply to Tesla Model 3, which will be available in Chinese market from the second half of 2021.<\/span><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Europe, USA and China, known as the top three automobile economies of the world, are fueling up the competition to dominate the global electric car battery market, in line with the surging growth of the electric car markets.\u00a0Europe and US, in particular, are racing fast to outrun Asia. | \u201cEurope needs a strong … Read more<\/a><\/p>\n","protected":false},"author":564,"featured_media":3865,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3,347],"tags":[142,127,13,380,379],"class_list":["post-3859","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insight","category-trend_report","tag-china","tag-europe","tag-ev-battery","tag-northvolt","tag-usa"],"acf":[],"_links":{"self":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/3859","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/users\/564"}],"replies":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/comments?post=3859"}],"version-history":[{"count":5,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/3859\/revisions"}],"predecessor-version":[{"id":5450,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/3859\/revisions\/5450"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/media\/3865"}],"wp:attachment":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/media?parent=3859"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/categories?post=3859"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/tags?post=3859"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}