European Battery Industry is key to strengthens our societal resilience
Recent crises and rapid global changes have highlighted the critical role of battery industry in ensuring security of supply. But how dependent are we on batteries already?
While the connection between the battery industry and the green transition is well recognized, less attention is paid to the role of batteries in strengthening the resilience and security of modern society. As transportation becomes increasingly electrified and battery demand is expected to surge, batteries are already essential in a wide range of applications:
- In low-emission transportation
- Balancing fluctuations in renewable energy production
- In mobile devices
- Backup power for critical infrastructure
- In defence industry
Many of society’s vital functions are already heavily dependent on batteries. This growing dependency must be considered when evaluating security of supply and societal resilience. Battery production and technological expertise are key to safeguarding Europe’s autonomy during times of crisis.
We are currently experiencing a second wave of electrification. Electricity is no longer confined to wired networks—advanced battery technologies have enabled the widespread use of electric vehicles and mobile devices. To maintain safe living conditions, we depend on critical infrastructure such as transportation networks, energy distribution, water and waste management, and telecommunications.
These systems require an uninterrupted power supply. Batteries play a crucial role in ensuring this continuity, and disruptions in battery supply chains can significantly impact long-term societal resilience.
Electrification also affects our defence system. Battery-powered devices are increasingly used in military operations. Drones and other unmanned vehicles are deployed in combat, and soldiers rely more on electric equipment. Batteries are a strategic technology for security, and their availability must be ensured – even during crises.
Strengthening Security of Supply Through a European Battery Value Chain
European production helps mitigate the risks associated with long and complex global supply chains. Battery manufacturing involves numerous material processing steps, often spread across the globe. Each component and raw material of battery is typically sourced separately.
A robust battery production chain is also essential for efficient recycling. When batteries reach the end of their life, materials can be recovered and reused by raw material producers. Establishing a European production chain enables the creation of an efficient recycling system, where battery materials are both produced and reused locally.
Battery Investments Require Stable and Predictable Regulation
Building a European battery value chain must not be hindered by additional uncertainties. Political indecision regarding emission reduction targets in transportation slows down electrification and discourages investment in the battery sector.
The EU’s Critical Raw Materials Act (CRMA) sets targets for raw material production, processing, and recycling. However, so far there are only minor actions to meet these goals. Advancing the battery value chain requires bold political decisions that support the green transition while simultaneously enhancing societal resilience.
A positive example is the battery materials factory in Kotka, a project in which Sweco is actively involved. It shows how we are contributing to the development of a European battery value chain and strengthening battery industry expertise in Finland.
Erno Voutilainen, Market Executive, Battery Industry, erno.voutilainen@sweco.fi