Europe holds a strategic position in the battery value chain, driven by a robust automotive legacy and an increased focus on reducing CO2 emissions. With the resilience of future value chains in mind, the EU is actively and consistently working to further strengthen the European next-gen technology ecosystem in order to compete with incentive systems like the US Inflation Reduction Act. To achieve this, the EU parliament recently adopted the “Critical Raw Materials Act”, a second legislation named “Net Zero Industry Act” is scheduled to follow shortly. With those two acts, the EU aims to foster industrialization and secure raw materials for the emerging battery industry. 

This whitepaper assesses both acts, focusing on their implication for the European battery industry. The stated target production capacities of 2030 are evaluated for cathode active material, anode active material, and battery production. Further upstream, planned extraction, processing, and recycling quotas are critically assessed under consideration of current ramp-up announcements.

Ultimately, an overall impact assessment for both acts is carried out to evaluate their influence on the European value chain ramp-up. This assessment abstracts the strengths and weaknesses in the legislation design and opens up further points that are required to be addressed in the future.