2025
European Gigafactory Market
Policy-Action Framework for Europe’s Battery Sector
05 | Policy-Action Framework for Europe’s Battery Sector
To translate strategy into scale, the European Policy Centre has suggested that Europe should pursue a coordinated set of measures across manufacturing, financing, supply chains, partnerships, and technology
Foster a Supportive Framework for Competitive Manufacturing
Ensure affordable energy, strengthen workforce skills, streamline regulatory requirements,
expand funding access, promote low-cost manufacturing processes, and accelerate EV charging
infrastructure rollout under the Sustainable Transport Investment Plan.
Accelerate Efficient, Sufficient Funding
Shorten implementation timelines, expand the new EV-battery Innovation Fund beyond the initial
call, mobilize private capital via Public–Private Partnerships (“PPP”), and establish a dedicated Joint
Undertaking for the automotive/battery value chain (incl. TechEU).
Launch a “Sync360” Platform
Create a 360° coordination mechanism (under the proposed Competitiveness Coordination Tool)
to align R&D, critical raw material access, talent, state aid / IPCEI decisions, and demand creation at
scale and speed.
Grant Privileged Access to the Critical Raw Materials Platform
Use EU-level demand aggregation/joint purchasing and give battery players premium access to
CRMA “Strategic Projects” to secure inputs and attract private upstream investment.
Accelerate the Shift Towards a Circular Battery Economy
Curb exports of battery waste, classify “black mass” as hazardous across the EU, harmonize and
reduce transport bureaucracy, and invest at scale in recycling capacity and new processes. Apply
consistent permitting standards across member states.
Promote Joint Ventures Over Standalone Greenfield Projects
Encourage partnerships with leading Asian firms; co-locate near EU EV manufacturing hubs;
include knowledge-sharing and supply-commitment clauses backed by EU incentives; diversify
beyond China to include South Korea and Japan.
Invest in Next-Generation Battery Technologies
Radically scale EU R&D and support for solid-state, sodium-ion, and other emerging chemistries.
De-risk critical raw material sourcing at the EU level to bring these technologies to market
readiness in the early-to-mid 2030s.
Apply Trade Protection Selectively and Strategically
Monitor China’s battery overcapacity, deploy Trade Defence Instruments and the Foreign Subsidies
Regulation with precision, protect European producers while carefully managing supply chain
impacts, and exempt critical raw materials and components from such measures until a robust EU
supply chain is in place.