Article Summary –
The European Union needs to simplify its financial support and conditions for the bloc’s battery manufacturing ecosystem, according to panelists at a conference hosted by Benchmark Mineral Intelligence. Speakers highlighted the approach taken by the US and China, which offer clear incentives for companies who fulfil certain targets, and suggested that Europe should work on streamlining paperwork and fostering closer partnerships between the government and private sector. Meanwhile, the Inflation Reduction Act in the US was noted for its grants and tax credits for clean energy manufacturing, and for its tax credit incentives for downstream clean energy projects like energy storage.
Clark Addresses Battery Manufacturing at Stockholm Conference
At the Benchmark Mineral Intelligence conference, Clark spoke about mass battery production for the region. He highlighted the costs of battery production, noting “US$35 per kWh for battery cell manufacturing and US$7,500 for electric vehicle components, backed by a US$369 million investment.”
Europe’s Potential in the Battery Market
Clark suggests that Europe can outperform North America in battery manufacturing, provided they simplify their operations. He notes that European companies like Northvolt and Freyr have been considering expansion into North America due to its ease of understanding.
Europe’s Actions Towards Battery Manufacturing
On the first day of Giga Europe, Clark discussed creating a European hub for next-generation battery development. Maroš Šefčovič of the European Commission stated the EU’s commitment to financially supporting a thriving battery manufacturing ecosystem.
Insights from Vertical Ventures’ Anthony Tse
Investor Anthony Tse, in the same session as Clark, pointed out that the USA has adopted China’s ‘carrot and stick approach’. He also mentioned the Inflation Reduction Act, which he believes will cost the US around US$300 billion to US$1 trillion.
Comparing US and Europe’s Battery Manufacturing Approaches
Tse further compared the US and Europe’s approaches to battery manufacturing. He noted that while in the US and China, the government provides incentives for industry development, Europe places more of the financial burden on the private sector. He advocated for a more synergistic approach between government and private funding.
Inflation Reduction Act’s Impact on Clean Energy
The Inflation Reduction Act also includes tax credit incentives for investment and production for downstream clean energy projects, including energy storage.
Upcoming Energy Storage Summit USA
Solar Media will host the 5th Energy Storage Summit USA, in Austin, Texas from 19-20 March 2024. It will focus on accelerating the market for energy storage across the country. More information is available on the website.
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