The massive switch to electric vehicles in Europe will lead to a surge in demand for battery production and distribution facilities across the region over the next 10 years, a new research report concludes.
More than 250 new battery plants are expected to be established in Europe over the next decade to service the demand, according to research by consulting firm Buck Consultants International (BCI) which was presented at the Transport Logistic exhibition in Munich this week.
The global battery market is expected to grow by 800% in the next five years, with an increasing share produced in Europe (mainly lithium-ion), BCI found.
‘As there is a substantial disconnect between Europe’s electric vehicle ambitions and current battery manufacturing capacity, we expect a wave of new plants,’ said René Buck, CEO of Buck Consultants International.
The need for production space would come not only from the battery manufacturers themselves but also from their suppliers, he noted. Fuelling the demand in Europe is a desire to become less dependent on Chinese battery producers.
The anticipated boom will open up opportunities for the entire value chain, according to Eric Mekenkamp, principal consultant at BCI. Cities and regions which want to develop themselves into battery hot spots have to make a detailed Battery Cluster Development Plan, he explained.
‘A successful business plan starts with an analysis of what the region really has to offer for various parties in the whole value chain. The plan should include, among others, technological cooperation possibilities with universities, a realistic labour market analysis, an overview of small and large sites for potential investors and a tailor-made marketing plan focused on specific target groups,’ he said.
