- The EU can produce enough batteries to power its fast-growing electric vehicles without relying on imported batteries.
- Currently, China's lithium-ion battery production accounts for about 80% of the world's total, but European production capacity will rapidly expand.
- The IMF allegedly refused to establish a new instrument for epidemic prevention loans.
According to reports, Vice President of the European Commission Maros Sefcovic said on Tuesday that by 2025, the EU can produce enough batteries to power its fast-growing electric vehicles without relying on imported batteries. It’s part of the plan to achieve “climate neutrality” by 2050.
The EU hopes to increase local production, which is known as the “cornerstone of green industry,” including hydrogen fuel for the manufacture of low-carbon steel and batteries that power clean cars.
Sefcovic told the online European Conference on Batteries, held online:
“I am confident that by 2025, the EU will be able to produce enough battery cells to meet the needs of the European automotive industry, and even to build our export capacity.”
Currently, China’s lithium-ion battery production accounts for about 80% of the world’s total, but European production capacity will rapidly expand.
Currently, fifteen large battery factories in Europe are under construction, including the Swedish company Northvolt’s factories in Sweden and Germany, the Chinese battery manufacturer Ningde Times’ factory in Germany, and the South Korean company SK Innovation’s second factory in Hungary.
Sevkovic said that by 2025, the planned European plant will produce enough batteries to power at least six million electric vehicles.
Although the new coronavirus epidemic has caused overall car sales to plummet, data shows that the total sales of pure electric and plug-in hybrid vehicles in Europe this year are expected to double to 1 million. The European Commission predicts that by 2025, 13 million low-emission vehicles will be on the roads of Europe, so further investment is needed.
The Swedish battery manufacturer Northvolt’s vice president of external communications, Jesper Wigardt, said: “We need to make significant investments in creating a full European supply chain and labor market to support the battery factories.”
IMF Allegedly Refused to Establish New Instrument for Epidemic Prevention Loans
The IMF has recently refused to provide a relaxed conditions and epidemic prevention tools.
People familiar with the matter said that the discussion about the epidemic prevention support tool was discussed a few weeks before the IMF annual meeting in mid-October, when the IMF was preparing to announce new measures.
They said that the consensus of the International Monetary Fund’s Board of Governors, which represents the treasury ministries of the member states, said that current tools can implement the necessary loans and new tools should not be created without necessity.
The creation of the new tool will require the approval of board members representing 85% of the voting power of the IMF.
IMF spokesperson Gerry Rice declined to comment directly on this proposal. He said in a statement:
“We continue to apply flexibility available in existing IMF lending tools as approved by our executive board to support our member countries, calibrated to their pandemic-related needs.”
“This has enabled the IMF to respond to this crisis as never before in our history and help our member countries on an unprecedented scale and at unprecedented speed.”
Since the epidemic began, the IMF has provided more than $100 billion to more than 80 countries in new financing, mostly with limited conditions or unconditionally. The organization doubled the annual emergency financing limit for countries in April.