Europe’s fight to build a local EV and battery supply chain
The recent announcement of funding for 47 strategic project, in line with the EU’s CO2 targets for carmakers in force this year, suggests progress. But after the EU’s tariffs on Chinese EVs, and the US waging its own trade war with China, is Europe’s road to electrification faltering?
Join the Argus Battery Materials team — editor Tom Kavanagh, reporter Chris Welch and analyst Dylan Khoo — in discussing what lies ahead in this fast-evolving market.
Key topics covered:
- The EU’s €22.5bn for 47 critical minerals projects
- China’s investments in Europe’s EV supply chain
- What might a US-China trade war mean for Europe?
- Will the EU meet its CO2 targets for 2035?
Related news
India's Delectrik wins 100MWh VRFB storage project
India's Delectrik wins 100MWh VRFB storage project
Mumbai, 21 July (Argus) — India's state-owned NTPC Renewable Energy (NTPC REL) has awarded an engineering, procurement and construction contract to battery storage firm Delectrik Systems for a 100MWh vanadium redox flow battery (VRFB) energy storage system. The project will be developed by technology provider Delectrik Systems in partnership with Bondada Engineering at Gujarat's Khavda Solar Park, marking the country's first utility-scale deployment of the long-duration storage technology. The battery energy storage system (Bess) is scheduled to be commissioned in the second half of 2027, Delectrik told Argus on 21 July. The electrolyte will be manufactured at Delectrik's Gujarat facility, while the cell stacks will be produced at its Gurugram plant, chief executive Vishal Mittal told Argus , supporting domestic manufacturing of key project components. VRFBs store energy in liquid vanadium electrolyte while electricity is generated through cell stacks, enabling longer-duration storage by independently scaling energy capacity and power output. The project is expected to be India's first grid-scale, non-lithium Bess project, broadening the country's storage technology mix beyond lithium-ion batteries that dominate current deployments, the company said. Delectrik expects additional utility-scale VRFB opportunities in India over the next 12-24 months, including government tenders and commercial and industrial projects, Mittal said. The company pointed to a 120MWh VRFB tender issued by state-owned Gujarat Industries Power (GIPCL), for which bidding has closed and an award is expected in the coming weeks. Delectrik previously deployed a 3MWh VRFB demonstration project for NTPC at Greater Noida in 2025. India has 35.8GWh of Bess capacity under implementation as of March, according to the power ministry. The Central Electricity Authority's National Electricity Plan (2023) projects a requirement of 208GWh of Bess by 2030 to support the integration of growing renewable energy capacity into the grid. By Keertiman Upadhyay Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
China's CATL invests in hydro on stricter battery rules
China's CATL invests in hydro on stricter battery rules
Beijing, 21 July (Argus) — China's largest battery producer, CATL, plans to invest in a hydropower project in Yajiang county, Ganzi prefecture, Sichuan province, through a joint venture (JV) with state-owned power producer SDIC Power, in a move that could help secure renewable electricity supply and reduce the carbon footprint of its battery products. CATL and SDIC Power will establish a JV, Yalong River Yagen Hydropower Development, to develop a second hydropower station downstream of an existing project on the Yalong River, SDIC Power said on 21 July. The project has a total planned investment of 33.39bn yuan ($4.66bn), with CATL holding a 10pc stake in the Yagen JV. Construction is expected to take around 101 months, with the first generating unit scheduled to enter operation in 2035 and full commissioning targeted for 2036. The station will be capable of replacing 2.664GW of coal-fired and natural gas-fired power generation capacity once commissioned, SDIC power said. Based on thermal-equivalent calculations, the project is expected to save approximately 2.535mn t/yr of standard coal and 2.086bn m³/yr of natural gas, while reducing CO2 emissions by around 4.51mn t/yr. The investment highlights growing efforts by battery manufacturers to secure access to renewable electricity as they seek to lower emissions across their supply chains. The project could help CATL lock in long-term green power supplies and support its broader strategy of reducing the carbon footprint of battery production. CATL has increasingly emphasized the commercial value of emissions reductions and low-carbon manufacturing, according to sources familiar with the matter, as battery producers face stricter sustainability requirements from overseas customers and regulators. Earlier this year, CATL invested Yn10bn to establish a zero-carbon technology company in Xiamen. In June, the company's EnerD+ energy storage products received one of the first certifications issued under China's pilot programme for product carbon-footprint labelling. The certification was the first, and so far the only, national-level carbon-footprint certification awarded to a lithium battery product in China. The EU is one of the major export markets for Chinese battery suppliers. The EU's Carbon Border Adjustment Mechanism (CBAM) and the bloc's new battery regulation have introduced more stringent requirements for carbon footprint reporting and emissions performance across battery supply chains. The EU announced in July 2023 that it will require electric vehicle (EV) and industrial batteries with a capacity greater than 2kWh placed on the EU market to be electronically registered from 18 February 2027. This registration will take the form of a battery passport featuring an identification QR code and CE marking. The hydropower investment also reflects a broader trend of battery manufacturers seeking greater control over upstream resources, energy supply, and decarbonisation pathways as global demand for EVs and energy storage systems continues to expand. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Houthi navigation ban could disrupt Saudi steel imports
Houthi navigation ban could disrupt Saudi steel imports
London, 20 July (Argus) — Yemen's Houthi rebel group said on 20 July that it was imposing a ban on maritime navigation linked to Saudi Arabia, framing the move as a response to what it described as the kingdom's ongoing blockade of Yemen and military aggression against the country. The move could threaten not only crude exports from Saudi Arabia's Red Sea terminal of Yanbu, but also steel shipments into the kingdom. The immediate exposure appears higher for vessels sailing to Saudi Red Sea ports from Asia through the Bab el-Mandeb strait, while cargoes reaching ports such as Jeddah or King Abdullah Port from the Mediterranean via the Suez Canal would avoid the Bab el-Mandeb area and may face a lower operational risk, unless the Houthis seek to target Saudi port calls more broadly. "I guess the situation will get worse and will definitely affect shipping charges, because vessels would have to turn around the whole of Africa, especially given the impact on the strait of Hormuz," a trader said. "Let's see what happens in the next few days. Only the Europe gate will remain open." The Houthi group said in a statement that the measure would take effect immediately under a "siege for siege" formula. It also warned of further escalation should Saudi Arabia take additional military steps, while calling for continued mobilisation across Yemen. Saudi Arabia imported around 3.1mn t of steel products in the first quarter of 2026, down from 3.8mn t a year earlier, according to Global Trade Tracker (GTT). China was the largest supplier of steel products to Saudi Arabia in the first quarter, shipping around 1.2mn t, GTT data show. This included 667,000t of hot-rolled coil, 21,000t of cold-rolled coil, 140,000t of hot-dipped galvanised steel, 132,000t of semi-finished products including slabs and billets, as well as other steel products. Any disruption to Red Sea shipping could therefore complicate inbound flows of flat steel, semi-finished products and other steel cargoes. At least two steel cargoes from China are currently en route to Saudi Arabia's Red Sea coast and have not yet crossed Bab el-Mandeb. The 55,561dwt Better Victory is carrying steel from Tangshan to King Abdullah Port, while the 56,860dwt Dato Success is sailing from Caofeidian to the same port, according to analytics firm Kpler. Neither vessel has shown signs of turning around. Several tanker owners had already been preparing for a possible escalation, as the Houthis have used "siege for siege" rhetoric for some time. The very large crude carrier (VLCC) VL Pioneer made a U-turn in the Red Sea on 17 July and is now ballasting eastward instead of heading to Yanbu, according to Kpler data. The VLCC Farhah , which loaded at Yanbu on 10 July, made a U-turn at Bab el-Mandeb on 17 July and returned to the Saudi port, Kpler data show. But a number of vessels are still transiting the Red Sea. The Houthi move could also put upward pressure on additional war risk premiums for ships transiting Bab el-Mandeb. Premiums were still relatively low in mid-June, at around 0.20-0.30pc of hull and machinery value for a seven-day period, with a 50pc no-claim bonus, according to market participants. By Andrey Telegin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Port Hedland strike fails to halt Fe exports: BHP
Port Hedland strike fails to halt Fe exports: BHP
Sydney, 17 July (Argus) — Worker strikes at Australian miner BHP's Port Hedland iron ore operations in the Pilbara region of Western Australia (WA) did not prevent a loaded vessel from leaving port early on 17 July, despite earlier union threats to pause shipping. About 63 of 200 eligible workers opted to strike between 14:00 to 22:00 AWST (06:00 to 14:00 GMT) on 16 July, a BHP spokesperson said on 17 July. More than 1,000 workers were on site that day. Every electrician at BHP's port operations participated in the strike, Electrical Trades Union (ETU) WA secretary Adam Woodage said on 17 July. Other unions involved at the port, including the Western Mine Workers Alliance (WMWA), and the Australian Manufacturing Workers' Union (AMWU), may not have taken part. BHP has been negotiating a new enterprise agreement (EA) with its Port Hedland maritime workforce since October 2025, which will cover around 450 employees, excluding contractors. The unions last met with BHP on 14 July to discuss wages and working conditions but failed to reach an agreement. Their next enterprise bargaining meeting is scheduled for 21 July, the combined port unions said on 14 July. Port Hedland is the world's largest bulk iron ore export port and a key export hub in BHP's WA iron ore supply chain. BHP produced 291.2mn t of iron ore on a 100pc basis from its WA operations in the fiscal year from July 2025-June 2026, according to its latest full-year operational review released on 16 July. All of BHP's WA iron ore is exported through Port Hedland. By Emma Partis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.