Following the discussions about Northvolt in Sweden and in the context of a push for a new EU competitiveness agenda, EPHI has decided to investigate similar initiatives across Europe. We have commissioned Jonas Grafström, PhD in Economics, to produce a report on the European battery industry. Northvolt is not the only costly failure.
The EU is currently in a very formative phase, with a recent election and hearings with candidates for new Commissioners scheduled for the coming weeks. One of the main topics on the new Commission's agenda is the promise of a 'Clean Industrial Deal', to continue the journey towards the realization of the European Green Deal and a climate-neutral EU.
The ongoing discussions about the future of the EU can, in summary, be referred to as the revival of industrial policy, much of which was addressed in the recently released report by Italy’s former Prime Minister Mario DraghiAmong the various proposals mentioned in the discussions are how to achieve European leadership in green technologies, state aid rules, common debt issuance, and the future of the combustion engine (which is currently set to be phased out in the EU from 2035).
However, strengthened European competitiveness does not necessarily have to mean heavy subsidies and public investments in selected industries and technologies. It can instead involve fewer regulations and a more innovation-friendly internal market.
Industrial ventures where politics becomes directly involved and starts picking winners and losers carry substantial risks, as demonstrated by Northvolt, one of Europe’s largest unlisted companies, and the other large-scale battery initiatives across Europe.
The report is being written by Jonas Grafström, PhD in Economics, and will be published in November. Stay tuned for more information and invitations to our seminars in connection with the report release.
