By Mathieu Rosemain
AIX-EN-PROVENCE, France (Reuters) – A “Chinese language storm” is looming over Europe’s rising electrical automobile (EV) sector, Renault Chairman Jean-Dominique Senard informed Reuters on Saturday, as Asia’s superpower dominates key uncooked supplies to make batteries for zero emission automobiles.
China’s latest determination to limit exports of two metals – gallium and germanium – utilized in semiconductors and EVs ought to elevate pink flags for European leaders because it exhibits the continent’s over-reliance on China and the necessity to construct a expensive provide chain, Senard stated in an interview.
“Once I speak about a Chinese language storm, I am speaking concerning the sturdy stress as we speak associated to Chinese language (electrical) automobile imports into Europe,” Senard stated.
“We’re able to making electrical automobiles, however we’re combating to make sure the protection of our provides,” he stated, including China’s EV business and provide chain for uncooked supplies resulted from years of investments that may price billions of euros to duplicate.
China’s export restrictions are escalating a expertise battle with the US, doubtlessly inflicting extra disruption to international provide chains. Europe finds itself in the course of the spat, compelling it to search for options within the worst-case-scenario.
“If there’s an actual geopolitical disaster, the injury to battery factories solely powered by merchandise coming from outdoors shall be appreciable,” Senard warned. “That is the difficulty”.
The event of other fuels – comparable to artificial e-fuels and hydrogen – could be essential within the occasion of a sudden scarcity of batteries resulting from a dearth of uncooked supplies, Senard stated.
“As any cautious producer would do… we’re in search of options to keep away from paralyzing the nation if, for instance, we run out of batteries”.
(Reporting by Mathieu Rosemain; Extra reporting by Gilles Guillaume; Modifying by Mark Potter)