Imported batteries are cheap

Are battery imports from China a problem?

For policymakers, battery imports from China could become a major concern. They could undermine the EU’s push to foster European battery champions, and the goal of member states to capture local value added (batteries account for 30-40% of an EV’s value).

Will Chinese EV manufacturers continue to import Cheap batteries from China?

These investments are, in any case, primarily intended to serve European OEMs. Chinese EV makers like BYD, a fully integrated company that also produces batteries, could continue to import cheap batteries from China, facing only a 1.3% tariff.

Should Chinese battery companies invest in the EU?

Chinese battery firms have made significant investments in the EU, but companies like SVOLT and CATL have either canceled or scaled back their investment plans. These investments are, in any case, primarily intended to serve European OEMs.

Does BYD import battery cells from China?

The Chinese firm hosted a supplier conference in July to attract Austrian suppliers. However, BYD has also announced that, initially at least, it will import battery cells from China. And even the steel used to build its Hungarian plant has been sourced from China. For policymakers, battery imports from China could become a major concern.

Is the EU battery industry losing out to foreign competition?

At the same time, the EU battery cell import tariff is the lowest compared to China (10% for EU) or the US (10.9% for China), at a mere 1.3% currently. Without decisive protective and supportive measures, the EU battery industry risks losing out to foreign competition.

Can electric cars be imported into Europe?

T&E’s paper looks at electric vehicle imports into Europe and what an effective response on both EVs and batteries might be. The sales of battery electric cars in Europe have been growing quickly, with 2 mln cars sold across Europe in 2023 alone.