European Electric Vehicle Battery Market Analysis (2020-2028)

Market Overview

Europe’s EV battery industry expanded rapidly from 2020 to 2025, fueled by surging EV sales and strong policy support. Despite early COVID-19 disruptions, government incentives, like purchase subsidies in Germany and France, sparked a rebound in demand. The EU’s climate targets (55% CO₂ cuts by 2030 and a 2035 ICE ban) and falling battery costs (~85% over a decade) further accelerated adoption. Initially reliant on Asian imports (just 3% of global cell output in 2020), Europe pushed for self-sufficiency through the European Battery Alliance, which attracted over €100 billion in investments, funding gigafactories and awarding over €3 billion in subsidies to firms like Tesla and BMW by 2021. By 2025, strategic investments and regulatory support had strengthened the continent’s battery supply chain, reducing dependence on foreign suppliers while meeting growing EV demand.

Expert View

Ian Goodman: "The technology in this area has grown significantly in the last few years, but scaling it and the ability to make money from it are the primary factors in meeting the targets." Founder & Director of EEvolution Battery Systems Ltd., EV Battery & High Voltage Systems Expert

Dirk Gebser: “From my experience installing two factories, most European gigafactories are delayed by about two years. EU regulations on sourcing and recycling need to be reworked to stay competitive amid geopolitical pressure. China leads in scale, mobilisation, and speed— Europe isn’t close, though there are new initiatives in the West.”Former Senior Director Manufacturing - Giga Factory for Battery Systems, Northvolt; Director of Energy Storage Manufacturing, Dyson, and Industrialization Battery for Aerospace

Future Outlook

Strong Expansion: Projected 19-40% CAGR, reaching ~€50B by 2028 due to...

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