France and over 190 other countries have pledged to limit global warming to below two degrees. Dozens of these countries have also set themselves the target of achieving zero net CO2 emissions by 2050.
To meet these targets, governments, scientists and experts agree on the need for massive deployment of low-carbon technologies, in particular electric cars. But the key to the electric vehicle market is batteries. Batteries account for between 30% and 40% of the value of an electric vehicle. The electrification of vehicles in Europe is one of the main growth drivers for the battery market. Large-scale battery production is a strategic factor in the energy transition.
Automotive battery production: a challenge of economic sovereignty for the European Union
Battery production is not just a question of industrial competitiveness, it's also a question of economic sovereignty, and at different levels:
1. Strategic independence
- Dependence on battery imports, mainly from Asia, exposes Europe to geopolitical and economic risks. Trade tensions or disruptions in the supply chain could have disastrous consequences for the European automotive industry.
- By strengthening its production capacities, Europe can reduce its dependence and guarantee its strategic autonomy in a key sector.
2. Employment and competitiveness
- The development of a European battery industry could generate thousands of high value-added jobs in manufacturing, research and related services.
- By mastering technology and production, European companies will improve their competitiveness in the face of fierce Asian competition, not only in the electric vehicle sector, but also in other industrial and energy applications.
3. The energy transition
- To meet the EU's ambitious climate targets, electric vehicles are set to become the norm from 2030 onwards, ahead of schedule since the regulations require a switch to electric vehicles from 2035 onwards. Local battery production supports this transition by reducing the carbon footprint associated with transporting batteries, and facilitating control of their lifecycle, including recycling.
- Batteries are also essential for renewable energy storage, which is crucial for stabilizing power grids and integrating intermittent energy sources such as wind and solar power.
The European Union needs to develop its own battery production capacity to secure its energy and industrial future.
"France and the rest of the EU have a significant amount of ground to make up in terms of battery technology and production," notes Claude Núñez, Director of IFP School's Powertrains and Sustainable Mobility Center.
This delay can be explained by several historical and economic factors:
1. Asian domination
- The world leaders in battery production are largely concentrated in Asia, with companies such as CATL in China, LG Chem and Samsung SDI in South Korea, and Panasonic in Japan. These companies have benefited from long-term government policies, years of experience in scaling operations to an industrial level to the benefit of a local market (China), government subsidies, massive R&D investment and support, and vertical integration of their supply chain. None of these leaders are European!
2. Geopolitical situation
- The United States is pursuing an aggressive strategy in battery production, thanks to major subsidies and investments under the Inflation Reduction Act (IRA). Passed in August 2022, this law subsidizes American batteries by up to $45 per KWh and 10% of the cost of producing critical minerals and materials. The Biden administration's policy is aimed at relocating the manufacture of technologies essential to the future of clean energy and transportation in the country.
- The United States has implemented a comprehensive strategy to protect the automotive and battery manufacturing sectors from the influx of electric vehicles (EVs) and batteries from Asia, particularly China. This strategy includes strong political measures and economic incentives to stimulate domestic production and reduce dependence on foreign imports (increased tariffs, subsidies and tax credits to increase battery production capacity on US soil).
- Faced with these protectionist policies on the part of the USA and a certain caution on the part of Europe, Asia and China in particular have concentrated their efforts on developing and exporting batteries to Europe.
- For a long time, the EU saw access to low-cost Asian technologies as an opportunity for cheaper electric vehicles. It was therefore slow to implement a global strategy to protect itself and develop a local battery ecosystem. But this situation has changed. The EU is developing its own strategy through strict regulations, customs duties and major investment in national production capacity.
The EU is now aiming to become a major player in the global battery market, which could reach 45 billion euros by 2027 according to BCG estimates.
Battery production gigafactories are springing up all over Europe. In France, we are witnessing the emergence of the "battery valley" in the Hauts de France region, where projects have already been launched in Dunkirk, Douai and Douvrin (Verkor, Envision AESC, ACC). A solid ecosystem is being created.
A new course at IFP School dedicated to the battery industry
Producing more efficient and competitive batteries is not only an industrial challenge, but also a human one, since skilled personnel will have to be recruited (and therefore trained).
To meet the growing need for new skills and participate in the industrial dynamic of responsible battery production, IFP School plans to launch a new Advanced-master - Mastère spécialisé program in September 2025: "Battery Engineering", subject to Conférence des Grandes Écoles (CGE) labeling.
Delivered in English, this one-year course will cover the entire battery value chain. The course is aimed at holders of an engineering degree or equivalent (four or five years of higher education), as well as professionals wishing to learn more about the battery industry.
Based on the "learning by doing" approach so dear to the School, this training program will be structured around six teaching modules:
- strategic materials;
- battery design ;
- manufacture of cells, modules and battery packs;
- use of batteries (recharging stations and smart grids);
- end-of-life treatment (recycling or reuse);
- the use of AI in the battery sector.
This program is designed to provide a comprehensive understanding of the battery value chain, encompassing every stage of the circular economy:
- Technical dimensions: master the principles of battery design, engineering and manufacturing processes;
- Regulatory landscape: navigating the complex policies and regulations governing the battery industry;
- Industrial applications: understanding industrial processes and innovations in battery technology;
- Safety standards: know the essential safety protocols for using and handling batteries;
- Environmental considerations: assess the environmental aspects of battery production, use and recycling;
- Life cycle assessment: evaluate the cost and environmental impact of batteries' life cycle;
- Use of artificial intelligence: master the methods and tools of data science and machine learning in the battery design and use process.
Interview with Claude Núñez, Director of the Powertrains and Sustainable Mobility Center and Project Leader of the future Advanced-master - Mastère spécialisé program « Battery Engineering »
1. You recently took part in a battery trade show. Can you tell us more about it?
The Advanced Automotive Battery Conference (AABC) took place from May 13 to 16 in Strasbourg, bringing together speakers from Accelera by Cummins, Audi, BMW, CATL, Daimler, General Motors, LG Energy Solution, Northvolt, Porsche, Stellantis, Tesla Motors, and many others. The event highlighted the latest advances in battery technology and future industry trends, as well as battery market forecasts.
The AABC show offers an ideal platform for exploring battery innovations, discussing current and future challenges, and networking with industry professionals. Here's a summary of some of the points made at the conferences I attended:
a. Battery chemistries
The presentations highlighted three chemistries in particular:
- High-Nickel Cathode batteries from NMC or NCA,
- solid-state batteries,
- and sodium batteries.
The technological challenges of high-nickel cathodes are related to:
- Thermal stability: cathodes with a high nickel content tend to have lower thermal stability, which increases the risk of thermal runaway;
- Manufacturing complexity: the production of high-nickel cathodes requires advanced techniques to ensure uniformity of particle size and distribution.
The technological challenges facing solid-state batteries are of a different nature:
- The complexity and cost of manufacturing methods;
- Material compatibility between solid electrolyte and electrodes;
- Achieving high ionic conductivity in solid electrolytes at room temperature remains an active area of research and development.
The main advantages of sodium-ion batteries are well known:
- Thermal stability superior to that of lithium-ion batteries, reducing the risk of thermal runaway;
- Material availability and environmental impact;
- Sodium is more widely available than lithium, which reduces the environmental impact of mining;
- The widespread availability of sodium guarantees a more sustainable supply chain, less subject to geopolitical constraints.
- The major technological challenge, however, remains durability. Sodium-ion batteries have a shorter lifespan due to the more rapid degradation of the electrodes, which can be an obstacle for use in the automotive sector.
b. Sustainable development, circular economy and recycling
The subject of the circular economy and recycling also featured prominently throughout the AABC conferences. Here are a few key dates and recyclability thresholds to remember:
2024: from August 18, 2024, manufacturers will have to calculate and declare the carbon footprint of batteries. In particular, they will have to provide a "carbon footprint declaration" for each battery model, which will be accessible via a QR code affixed to the battery from February 18, 2027.
2025: the recovery target will be 90% for cobalt, copper, lead and nickel, and 35% for lithium.
2027: introduction of recycled content declaration requirements for industrial and automotive batteries.
2030: recovery targets of 95% for cobalt, copper, lead and nickel, and 70% for lithium.
2035: revised recycled content targets of 20% for cobalt, 10% for lithium and 12% for nickel, with lead remaining at 85%. These recycled content targets are likely to evolve further.
The subject of the battery passport was also raised: the aim is to introduce an electronic passport system for every industrial battery and every electric vehicle from February 18, 2027. This passport is expected to contain over 90 listed points, including details of the manufacturer, material composition, disassembly manual, and battery health data. The main aim is to provide information on sustainability, carbon footprint, recycled content, responsible sourcing of materials, safety and battery usage.
2. What's the latest on the electrification of the automotive sector?
The transport sector, and the automotive sector in particular, have been going through a period of great change since 2018... It's a real transformation in terms of organizations, products but also skills. Periods of transition and major technological change are naturally turbulent, and in my opinion, it's always important to be able to look ahead to the medium/long term and avoid focusing on market volatility or short-term decisions. Moreover, it's in these periods of transition that IFP School's added value becomes even more important in supporting manufacturers in their need to upskill young engineers. So we need to take a step back and stay the course, despite the ups and downs the sector is going through this year.
Admittedly, the electric vehicle (EV) market in Europe experienced a significant deceleration in the first half of 2024 (sometimes even a decline in some countries). This decline can be attributed to a number of factors, including the phasing out of subsidies in key markets, competition from Asia and a wider economic downturn impacting on our citizens' budgets.
In France, EV sales volumes in the first quarter of 2024 rose by only around 15%, a much lower growth rate than in previous years. This represents a deceleration compared with the same period in 2023.
It’s the same situation in Germany, which saw a notable decline in EV sales, with a 14.1% drop in EV registrations in the first quarter of 2024. The end of subsidies in 2023 had a significant impact, leading to an overall 5% drop in electric car sales year-on-year.
Italy, in turn, has seen a significant drop in EV sales, with a 20% reduction in the first quarter of 2024 compared to the same period in 2023.
Faced with this situation, all European automakers are looking to cut costs. One of the strategies being considered is the vertical integration of certain components rather than relying on external suppliers, and this internalization starts with batteries!
There are various reasons for this vertical integration:
Firstly, the quest for cost reduction. Economies of scale and vertical integration reduce manufacturing costs. In-house production also helps reduce transport and logistics costs, and avoid supplier mark-ups.
Improved margins are a direct consequence of this strategy; by directly controlling production, manufacturers can optimize processes and technologies to maximize margins.
Security of supply is a key factor: reduced dependence on external suppliers minimizes the risks associated with supply chain disruptions. For example, strategic partnerships for the supply of critical materials such as lithium guarantee long-term stability.
Some examples and forecasts:
Stellantis has formed a joint venture with TotalEnergies (Automotive Cells Company - ACC) to build gigafactories in France and Germany, targeting a combined capacity of 50 GWh by 2030. This initiative is expected to supply batteries for around one million EVs a year.
Volkswagen is investing heavily in gigafactories to achieve a production capacity of 240 GWh by 2030. The automaker is also investing in recycling plants. This should be enough to power around 3 million EVs a year.
3. IFP School is about to launch a new program dedicated to the battery industry. What are the School's goals?
Our role is to anticipate future skills needs and support our industrial partners by training the engineers of tomorrow.
The targets set by the EU and carmakers are highly ambitious. The need for lithium-ion batteries in Europe is set to grow at an annual rate of over 15% until 2030, reaching a value of 16 billion euros. Estimated demand is 1,200 GWh per year by 2040. This growth calls for specialized engineers capable of designing, developing, producing and managing current and future battery technologies. Skills requirements in this field are expected to represent 15,000 direct jobs (30% engineers) by 2032, according to the forecasts of the various gigafactories, with a peak expected for all positions, from engineers to line operators, in 2027.
Our Advanced-master - Mastère spécialisé program on batteries aims to prepare students and give them a vision of the circular economy and the entire battery value chain, to support the needs of manufacturers in this sector.
While the development of batteries is today mainly driven by the automotive sector, it is also extending to other areas such as stationary energy storage to integrate renewable and intermittent energies into power grids, consumer electronics and industrial applications. The fundamentals are the same, and the skills addressed in our program are cross-disciplinary and transposable from one sector to another. The Advanced-master - Mastère spécialisé program will address a wide range of issues, including production management, cell, module and battery pack design, battery performance optimization, new technology development, battery manufacturing and recycling.
Our industrial partners need our help to meet the challenges that lie ahead, and we'll be there. By training specialized engineers, our program will support the innovation and technological development needed to meet the challenges of energy transition and sustainable industrialization.
4. Have you identified any industrial partnerships for this program?
The Battery Engineering Advanced-master - Mastère spécialisé program already enjoys the support of major names in the powertrains industry such as ACC (Automotive Cells Company), Renault Ampère and Stellantis, and the backing of our parent company IFP Energies nouvelles.
These partners have placed their trust in us, and are particularly demanding in terms of their skills development needs.
We aim to develop our partnerships with other French battery manufacturers such as Verkor, SAFT, Bolloré and Tiamat, as well as with international players based in France such as ProLogium Technology Co. and Envision Energy. Our ambition is to support all players in the battery value chain at European level, which is why this program will be offered in English.
Our program is being developed in close collaboration with experts from our partner companies. As a first step, we have jointly identified the key skills needed to meet the current and future challenges of the battery industry. The aim is to build a program that is perfectly adapted to the operational and strategic needs of our industrial partners, guaranteeing training that is in tune with the realities of the field.
Our students will benefit from cutting-edge teaching, aligned with the standards and requirements of industry leaders, ensuring they are optimally prepared to integrate and contribute effectively to these innovative companies.
Article written by : Claude Núñez. and Meyling Siu