
Europe Bets on Fuel Cells to Challenge Battery Dominance
Europe Bets on Fuel Cells to Challenge Battery Dominance The mobility battery sector is currently dominated by Asian companies, particularly from South Korea, China, and Japan, thanks to their technological prowess and robust supply chains. Recent data shows CATL from China holding a 37.9% market share in 2024, with BYD at 17.2%, highlighting their lead (Global EV battery market share: CATL leads with 37.9%). Meanwhile, Europe faces challenges, as seen with Northvolt’s bankruptcy filing in Sweden on March 12, 2025, attributed to high labor costs and difficulty competing with Asian manufacturers. Europe’s Battery Industry Challenges Europe’s efforts to build a competitive battery industry have been met with significant hurdles, as evidenced by the case of Northvolt. Northvolt, once seen as Europe’s flagship battery maker, filed for bankruptcy in Sweden on March 12, 2025, following financial difficulties. This development came after earlier Chapter 11 proceedings in the US, with reports indicating a liquidity crunch despite raising $15 billion in debt, equity, and subsidies. The company’s struggles are attributed to several factors, including higher production costs (about 50% higher than China), supply chain weaknesses, and a lack of specialized labor. Critics also point to Europe’s labor costs, stringent regulations, and perceived lack