KUALA LUMPUR (Dec 21): Investment in Europe’s battery industry is growing and the continent’s battery market value will pass €570 billion (about RM2.71 trillion) by 2030 and €1.7 trillion by 2040.

In a commentary on Monday (Dec 20), energy research and consultancy Wood Mackenzie (WoodMac) energy storage lead analyst Anna Darmani said she expects Europe’s battery demand to grow almost 11-fold from current levels by 2040, driven largely by electric vehicles (EVs) — likely to account for 94% of demand by then.

“Stationary energy storage systems (ESS), meanwhile, will account for 4% of annual battery demand by 2040.

“ESS deployment in Europe has been slow, but higher growth is expected,” she added.

According to Darmani, electric mobility will determine Europe’s battery demand, supply and prices.

She said EVs account for more than 80% of European and global battery demand, and future market trends will be crucial to global battery manufacturing capacity and potential supply crunches.

“Given the dominant role of the automotive industry in Europe, if supply issues happen, automotive players with long-term supply contracts will be the preferred clients over ESS project developers.

“The EU (European Union) wants 100% of all new vehicles sold from 2035 to be zero-emission vehicles.

“More significant investment in the continent’s electric automotive industry is needed for Europe to maintain its global competitiveness,” she said.