Summary
- External experts find no EU-wide or national requirements for technology transfer in battery factories in Poland and Hungary
- Lack of environmental and social conditions attached to state aid received by battery plants in Hungary and Poland
- Issues with air pollution, water management, and energy supply in Hungarian and Polish battery plants
- Lack of long-term technology transfer in EU-Chinese partnerships in Germany and Spain
- T&E calls for comprehensive European strategy for battery supply chains and intellectual property transfer to ensure environmental and work conditions are respected
Article
The investigation by external experts commissioned by T&E has found that there are no EU-wide or national requirements on technology transfer in battery factories in Poland and Hungary. Despite receiving substantial state aid subsidies from the Hungarian and Polish governments, the CATL battery plant in Hungary and the LG Energy Solution plant in Poland did not have any environmental or social conditions attached by the European Commission. The study also found that in partnerships between EU and Chinese companies, such as VW-Gotion in Germany and CATL-Stellantis in Spain, there is no long-term skill transfer and the focus is solely on short-term battery demand.
Both the Hungarian and Polish battery plants, which receive funds from the European post-covid recovery fund, have breached the EU’s Industrial Emissions Directive on air pollution. Concerns were raised about the excessive levels of NMP, a toxic substance used in cathode manufacturing, at both facilities. In addition, the Hungarian plant has issues with insufficient water management plants and energy supply. These environmental breaches contribute to the poor working conditions reported in the Hungarian battery industry. The investigation also highlighted the lack of technology transfer in plants in Germany and Spain, where the partnerships focused on securing short-term battery supplies rather than long-term skill development.
T&E is calling for clear foreign investment rules and a comprehensive European strategy for battery supply chains in order to address these issues. With a majority of electric vehicle batteries in the EU being produced by Asian manufacturers, there is a risk of Europe becoming solely an assembly plant, facing geopolitical challenges. T&E suggests leveraging the internal market power to establish rules on foreign direct investment for comprehensive technology and skills transfer. The organization also calls for the EU to address the battery challenge in the upcoming strategy for the automotive sector, including an investigation into unfair battery subsidies in China and establishing resilience criteria for state aid grants.
Julia Poliscanova, Senior Director for Vehicles & Emobility at T&E, emphasizes the need for environmental and work conditions to be respected in EU partnerships with Asian companies, as well as the requirement for intellectual property transfer. A comprehensive strategy for battery supply chains is set to be presented as part of the EU action plan for the automotive sector. T&E also recommends launching an investigation into unfair battery subsidies in China, setting resilience criteria for state aid grants, and establishing binding carbon footprint rules for batteries to access the EU market. The organization aims to accelerate the cleantech revolution and support independent cleantech coverage through donations from readers.
Overall, the investigation by T&E highlights the challenges and shortcomings in technology transfer and environmental compliance in EU and Chinese partnerships in the battery industry. It calls for stronger regulations, clear foreign investment rules, and a comprehensive strategy for battery supply chains to ensure that Europe remains competitive and does not become overly reliant on Asian manufacturers for battery production. The organization’s recommendations focus on protecting environmental and labor standards while promoting innovation and competitiveness in the EU automotive sector.
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