UK, European manufacturers want battery supply chain nearer home -survey

Proto Labs

13/07/2021 24:01

LONDON, July 13 (Reuters) - British manufacturers and those
in other parts of Europe want to move more of the supply chain
for batteries used in electric cars and renewable energy away
from China and closer to their plants, a survey showed on
Tuesday.
    China dominates the processing of the minerals used in
electric batteries, as well as making the cells and related
components, with Japan and South Korea in a distant second and
third place.
    But manufacturers in a survey of 200 European firms
conducted by industrial prototyping company Protolabs https://www.protolabs.co.uk
  PRLB.N  said they had grown more concerned about supply chain
disruption over the past year and wanted to use suppliers closer
to home.
    Japanese carmaker Nissan  7201.T  announced on July 1 that
it would invest 1 billion pounds ($1.4 billion) with a Chinese
partner Envision AESC to produce batteries near its main
European plant in Sunderland, northeast England.  urn:newsml:reuters.com:*:nL5N2OD19W
    Some 80% of firms said they wanted to move their supply
chain for batteries closer to production, rising to 84% of
British firms which were seeking to make changes within the next
12 months.
    "With just 6% of battery manufacturing taking place in
Europe, we are still heavily reliant on battery cell imports
and, with demand for electric vehicles increasing rapidly, there
is an understanding this has to change," said Bjoern Klaas,
managing director of Protolabs Europe.
    Britain's government has said it will ban the sale of new
diesel and petrol cars from 2030. The battery is usually the
most expensive part in the electric cars that will replace them.

 (Reporting by David Milliken; Editing by Emelia
Sithole-Matarise)
 ((david.milliken@reuters.com; +44 20 7542 5109; Reuters
Messaging: david.milliken.thomsonreuters.com@reuters.net))