Illustration: Chen Xia/GT

The battery, as one of the most essential components in electric vehicle (EV) manufacturing, is key to Europe's ambition to accelerate the EV transition. Yet, as its homegrown battery manufacturers face certain challenges, a promising way forward lies in fostering international collaboration across the entire EV supply chain and embracing greater openness to external partnerships. Such a strategy would enable Europe to rapidly accelerate the growth of its EV sector, turning bold ambitions into concrete progress in remarkably little time.

It is undeniable that European homegrown companies have made slow progress in the field of EV battery production. According to Bloomberg, 11 out of 16 planned European-led battery factories have been delayed or canceled. In sharp contrast, "10 of 13 projects in the region by Asian manufacturers such as China's Contemporary Amperex Technology Co and South Korea's Samsung SDI are on track." These numbers may serve as a reminder to Europeans that if they can set aside the misguided narratives in some Western media about a so-called zero-sum competition between China and Europe, and instead focus on the potential for mutually beneficial cooperation across the supply chain, they might uncover the key to unlocking the growth of Europe's EV battery industry and, by extension, the broader EV ecosystem.

Over the past decade, companies from Asia - particularly those from China, and South Korea - have emerged as competitive players in the EV battery manufacturing sector. In the face of fierce international competition, these companies have built impressive and multifaceted competitive advantages. Driven by relentless technological innovation, they have mastered a broad spectrum of core technologies and continually refined battery performance through process optimization. Simultaneously, their ability to scale production has significantly reduced unit costs, granting them a decisive advantage in pricing.

As these Asian manufacturers set their sights on Europe, the potential for mutually beneficial collaboration is enormous. By leveraging their established strengths, they are poised to play a key role in bolstering Europe's EV battery manufacturing capabilities, thereby contributing to both regional growth and industrial development.

For Europe, enhancing local production capacity for EV batteries is essential to accelerating the growth of its EV industry. When viewed from the perspective of the broader European supply chain, the geographic origin of manufacturing facilities, foreign or domestic, becomes less relevant. Companies, regardless of their country of origin, can bring substantial investment and create jobs within Europe, thereby becoming a positive part of the continent's manufacturing landscape. The true challenge lies not in the nationality of manufacturers, but in scaling production and optimizing processes. By establishing production facilities in Europe, international manufacturers can dramatically increase the continent's battery production capacity. This, in turn, will not only fortify Europe's EV battery industry but also accelerate the growth of its entire EV sector.

One of the key challenges Europe faces in advancing its EV battery industry is creating an investment climate that inspires confidence and attracts global capital. By aligning mutual interests and fostering synergies between European and Asian companies, both sides can benefit from partnerships that open new avenues for growth. This approach would not only stimulate innovation but also contribute to the long-term stability of the global EV sector, allowing both European and Asian firms to thrive together.

The EV industry functions as a highly interconnected ecosystem, where battery production is closely tied to other segments of the supply chain. It should be noted that China's EV market is expanding rapidly, with ongoing efforts to further open its industrial chain, offering significant opportunities for international businesses. China's continued opening-up has been a key driver of collaboration within the EV supply chain between Europe and Asian countries.

To fully tap into the potential of international collaboration in the EV battery sector, greater market and supply chain integration between Europe, China, and other Asian nations will be crucial. Ongoing communication and negotiation on trade policies are important for resolving friction, which in turn encourages reciprocal investment, removing barriers and discriminatory practices, and streamlining market access and investment facilitation.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn