Europe’s automotive industry is shifting gears in an increasingly competitive global market. As consumers move toward electric vehicles and away from internal combustion engines, European OEMs are navigating a battery value chain that is largely controlled by Chinese companies, senior partner Andreas Cornet and coauthors note. Some automakers in Europe are establishing strategic partnerships in an effort to boost supply and capacity for batteries and semiconductors.
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A series of 6 square pie charts display the distribution of 6 different automotive battery value chain resources across 4 regions: China, Europe, North America, and the rest of the world. The first chart illustrates the capacity share in integrated lithium mining and refining, with China holding 32%, Europe 0%, North America 2%, and the rest of the world at 66%. The second chart depicts the capacity share in lithium refining, where China commands a 90% share, with Europe at 0%, North America at 3%, and the rest of the world at 7%. In the third chart, the capacity share in cathode-active material sales is distributed as follows: China at 70%, Europe at 5%, North America at 1%, and the rest of the world at 24%. The fourth chart shows the capacity share in graphite anode active material sales, with China holding 90%, Europe at 1%, North America at 1%, and the rest of the world at 8%. The fifth chart portrays the capacity share in lithium-ion battery cell supply, where China has a 71% share, Europe an 11% share, North America at 10%, and the rest of the world at 8%. Lastly, the sixth chart displays the capacity share in electric-vehicle production, with China at 66%, Europe at 17%, North America at 10%, and the rest of the world at 7%.
Note: The US Inflation Reduction Act is expected to boost the US share of activity along the value chain.
Source: International Energy Agency; McKinsey Battery Insights; MineSpans by McKinsey.
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To read the article, see “A road map for Europe’s automotive industry,” August 31, 2023.