This article raises some very interesting points on how the decision to end MIP on solar imports from China can affect Europe's battery energy storage sector. Arnaud Chaperon from Total suggests that European solar demand is more driven by Member States' tenders rather than the price of the modules and ending the protective measures on European manufacturing sends the wrong message to other sectors.
Will the European battery storage industry require protection from Asian companies who have the ability to scale-up more quickly? China and Korea and already ahead in their production scale so it will be very interesting to see if the European Commission does anything to protect European battery suppliers.
The Commission has already made known its plans to make a strong European manufacturing base for batteries as a strategic industry. The expected high growth of electric vehicles in particular means that Europe must be careful in its strategic dependence on key components from China, Korea and other Asian competitors. This is important said Chaperon, because batteries account for close to 40% of the cost of a car, “so if you are not manufacturing the battery you lose immediately 40% of the turnover of your value chain on the core part”. Solar developers, of course, want the cheapest module, and car manufacturers will be no different in their quest to source the cheapest batteries, and the cheap supply could once again be dominated by imports from Asia.