Batteries are vital to the EU’s clean energy transition, industrial future, and strategic autonomy. While the sector benefits from strong R&D support, it faces challenges such as reliance on third countries, high costs, and competition from regions with lower environmental standards. Sustainable value chains and recycling could help, but uncertainty remains over the EU’s ability to meet future demand. Rising costs, market slowdowns, and gigafactory setbacks, including Northvolt’s collapse, raise concerns. To secure a resilient battery supply chain, the EU focuses on strategic coordination, regulatory frameworks, and funding, offering key lessons for industrial policy.

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