Europe is using batteries as a core technology in energy, industry and defence, but high dependence on overseas sources for key materials means it urgently needs to strengthen its supply chain, an analysis said.

On Sept. 16, electric-vehicle specialist outlet CleanTechnica reported that the Backbone Coalition, which includes European industry and energy groups, warned of structural vulnerabilities in the battery industry and set out response strategies in a report titled "Europe's Electric Backbone".

The report stressed that batteries are no longer a technology used only in electric vehicles. It said their use is expanding to grid stabilisation, industrial electrification, data centres and defence systems, making them a strategic foundation underpinning the economy and security.

The problem is the production base. Europe is rapidly expanding battery deployment on the back of public funding support, but domestic production of key inputs falls far short of demand. It said continued reliance on specific overseas supply chains could leave Europe vulnerable to geopolitical conflict or supply disruptions.

The Backbone Coalition argued that rather than full supply chain self-sufficiency by bringing all production processes back to Europe, it needs a strategy that combines domestic production with supply chains in trusted allied countries.

It urged the European Union to rapidly expand support for the battery industry over the next 3 years. It said predictable support linked to actual production performance should draw private investment, and stable demand should be secured through public procurement and policies that favour domestically produced goods.

It also stressed that support should not stop at battery cell production. It proposed expanding support across the value chain, including processing of key materials, recycling, manufacturing equipment and research and development for next-generation batteries. It also called for trade defence tools to respond to overseas subsidies and overproduction, and for strengthening supply chain security standards for defence batteries.

The report warned that Europe already has research capabilities, industrial experience and a large domestic market, but if it fails to link those to a competitive production base, capital, technology and talent could move overseas.