ADVERTISEMENT
China is emerging as the primary threat to the European automotive industry, not just because of its strategy to dominate the electric vehicle (EV) market but also due to its complete control over the raw materials necessary for production.
In a world transitioning to cleaner energy, Europe’s dependence on Chinese batteries for electric cars exposes a dangerous vulnerability. While Brussels celebrates its green transition, Beijing plays geopolitical chess, putting the European Union in check.
China: A Monopoly Disguised as Progress
China’s masterstroke has been its total control over the strategic resources needed for electric vehicle battery production. Specifically, lithium, cobalt, nickel, and gallium have become tools of geopolitical leverage.
The Asian country controls more than 70% of the critical raw materials for batteries, dominating not only their extraction but also the refining processes. For example, while much of the world’s lithium is found in Latin America and Australia, China has secured exploitation contracts, granting it a near-absolute monopoly on global supply.
What began as an economic strategy focused on resource procurement has evolved into an aggressive tactic of political influence. While Europe struggles to reduce its reliance on fossil fuels, China ensures there is no alternative but its own batteries. Europeans are caught in Beijing’s web, unable to progress toward true independence.
Tariffs and Retaliation: A Suitable Measure for Europe?
In response to China’s unstoppable advance, the European Union implemented tariffs on Chinese electric vehicles. It imposed countervailing duties on imported battery-electric passenger cars from China. This decision followed a 13-month anti-dumping investigation by the European Commission, which concluded that China’s battery electric vehicle (BEV) value chain “benefits from unfair subsidies causing a threat of economic harm to BEV producers in the EU.”
The EU is applying these new tariffs in addition to the pre-existing 10% import tariffs on vehicles, based on each manufacturer’s contribution to the investigation and the subsidies they were deemed to have benefited from.
However, these measures appear to be a temporary fix that does not address the root problem. China’s control over the critical raw materials for battery production poses a far greater threat than any tariff.
Despite the EU’s attempts to protect its automotive industry, China’s influence over the global battery market remains unstoppable. Far from being intimidated, China responded shrewdly: instead of confronting Europe openly, it wielded its most lethal weapon—export restrictions. By limiting the sale of materials like lithium and gallium, Beijing makes it clear that it will stop at nothing to maintain its dominance in the electric vehicle industry. Europe, dependent on Chinese supplies, finds itself unable to defend its autonomy in this critical sector.
The Destruction of European Industry: NorthVolt’s Collapse
One of Europe’s greatest failures in its effort to counter China was the bankruptcy of NorthVolt, the Swedish plant that represented the pride of the European automotive industry. NorthVolt closed its doors in November 2024—not due to a lack of talent or resources but because the machinery it used originated from China. The plant faced constant failures and operational challenges as the machines were not adequately adapted to local needs, and, worse yet, many of them weren’t even translated into English.
NorthVolt’s collapse is not just an industrial failure; it is a symbol of Europe’s inability to compete with China’s industrial power. European factories attempting to produce batteries for electric cars face a harsh reality: they lack not only the necessary raw materials but also the technology and adequate infrastructure. Meanwhile, China advances rapidly, reinforcing its dominance in both resource extraction and high-quality battery production.
China’s Strategy: A Game of Geopolitical Power
The real challenge lies ahead. Europe must not only combat technological dependency but also confront China’s growing power, which extends beyond electric vehicle batteries, threatening the continent’s economic and political sovereignty. The question is clear: Will Europe be able to free itself from Beijing’s influence, or will it remain trapped in a dangerous dependence that jeopardizes its future?
What is at stake is not just the economy. China is using its dominance over EV batteries as a geopolitical power tool. By controlling the strategic resources needed for the energy transition, Beijing holds a much stronger negotiating position than any European country could imagine. China not only imposes its will commercially but also exerts political pressure on Europe, which finds itself unable to advance its sustainability goals without relying on Beijing’s decisions.
Some analysts suggest that Europe’s dependence on China for battery production could have deeper implications, extending beyond the automotive sector. The future of Europe’s energy infrastructure, transportation networks, and, ultimately, control over access to key technologies could end up in Chinese hands unless urgent measures are taken.
Is Europe Truly Autonomous?
China’s strategy is not just a direct attack on Europe’s automotive industry but a blow to the continent’s political and economic autonomy. If Europe genuinely wants an independent future in the era of electric vehicles, it must take decisive steps to reduce its reliance on Chinese supply chains.
But the questions remain: Can Europe dismantle its dependence on China? Or is it doomed to continue relying on Beijing’s resources and technology, without real control over its destiny? The EU must question whether its decarbonization and energy transition policies are built on solid foundations or if, in the end, its ambitions will crumble, subject to the decisions of an authoritarian and opaque regime.
About The Author
