Nordic region key to revitalising European battery industry

The energy system of the future is based on batteries. But while other countries and regions have secured the entire chain – from raw material to finished product – Europe has lost momentum and is struggling with failed investments.
How can we reverse this trend?

Times are tough for battery manufacturers across Europe. Do Sweden and Europe have the potential to succeed in battery development at all?

The problem actually goes way back in time. In the 1980s and 1990s, Japanese and European battery manufacturers dominated, but a strategic European decision to abandon lithium technology proved fatal. As the new battery boom took off, Europe essentially had to start from scratch - while countries in other regions built an entire value chain, from mine to factory.

European battery industry has strong will but lacking structure

- Take China as an example. We knew they were buying up mines and processing plants in Africa and South America. It was no secret, but somehow we chose not to act," says Maciej Wysocki, business developer at RISE.

He has worked with batteries for 20 years and sees a European battery industry with strong will - but with a lack of structure. Meanwhile, overproduction, dumped prices and squeezed margins prevail internationally. More than 40 per cent of planned battery factories in the EU have now been scrapped or put on indefinite hold.

"Europe has lost momentum, and that's partly due to trying to do everything at once. You start with Omega before you even finish with Alpha," says Maciej Wysocki.

It's a mistake that he says can be costly: production, recycling, cathode furnaces and international expansion – all at the same time, before you've built up enough revenue.

But it's not just the business models that are failing. In many parts of Europe, there is a lack of both expertise and industrialisation capacity.

At the same time, European battery production is needed to build an efficient and sustainable energy system for the future.

"We must be able to produce batteries in Europe. Relying on imports is not sustainable - neither economically nor politically. This is about creating our own future," says Christina Jönsson, Marketing Manager at RISE.

The Nordic region – a region with favourable conditions for battery development

There are also regions with a better starting point. Christina Jönsson points to the Nordic region in particular - it has access to sustainable energy, geological deposits of several important minerals and a strong environmental regulatory framework.

"We have conditions that do not exist anywhere else. We also have an existing mining industry and good political stability, which is a strength when supply chains are challenged. Even if we don't have everything today, the potential is there," she says.

But to succeed, Sweden needs to focus and identify which parts of the battery value chain we can actually be good at, instead of trying to copy other countries' model for large-scale production.

One answer could be to invest where the margins are - for example in modules, packs and battery design. Or in recycling and smarter reuse, where Sweden already has strengths.

There is also a growing interest in alternative technologies.

"Sodium is one example. It can act as a drop-in chemistry for lithium in many processes, but with raw materials that are more readily available," says Mr Wysocki.

Diversification, both technologically and geographically, could be crucial as the need for reliable battery supply chains grows. At EU level, too, conditions are starting to change.

"The Critical Raw Materials Act, the EU's regulation for securing access to key raw materials, clearly indicates that we need to increase domestic production and reduce dependence on imports. This is not only about securing access to strategic minerals, but also about shortening authorisation processes and building entire value chains within the EU," says Christina Jönsson.

We will have an electric future – especially if we invest in wind and solar. Then it's all about batteries.

Sweden can take a leading role in the build-up

The conditions already exist. With the right investments, Sweden can take a leading role in building a more robust and independent battery value chain in Europe.

In this work, RISE acts as a bridge between research and industry, with the capacity to support all the way from cell chemistry and module production to recycling and simulation.

"Our strength is that we work in a more applied way, taking the results one step closer to industrial utilisation. We help companies move from the lab to production," says Maciej Wysocki.

"For example, in the area of modules and packaging, RISE can provide support with everything from simulation, design for recycling and strength to joining, pressing and material selection.

"We help test and optimise the critical stages of production, from construction to dismantling - including design for recycling and reuse," says Maciej Wysocki.

There are also plans to establish a new pilot line that could serve as a national test bed where industry can test concepts, optimise processes and develop new solutions.

New technologies, clearer strategies and smarter collaboration

All these steps – from new technologies to clearer strategies and smarter collaboration – are crucial. Because no matter how we look at the energy system of the future, we cannot escape batteries.

"We will have an electric future - especially if we invest in wind and solar. Then it's all about batteries. You can make hydrogen or electrofuel, but then you lose up to 80 per cent of the energy on the road. Batteries still have the highest efficiency. It's hard to do it any better," says Maciej Wysocki.