Here’s the inconvenient truth about your electric vehicle: Making its battery has a big impact on the environment. Producing an EV often generates more emissions than building a conventional car, with the benefits of going electric realized only after a good amount of driving. “Building batteries is creating a very large amount of carbon,” says Peter Carlsson, CEO of European battery manufacturer Northvolt.
So there’s no doubt that in both Europe and in North America, over time, you will see a regionalization of the supply chain to support industry development. From a security of supply, and from a sustainability point of view, there’s a strategic need to also build these supply chains regionally. It’s not just to reduce dependency on China, it’s also because of the need for shorter logistics, more reliable setups, and setups with lower carbon footprints.