Revenue in the electric vehicle (EV) market is projected to reach US$457.6bn in 2023, rising steadily to US$858bn by 2027, according to market researchers Statista. In 2021, China’s EV sales reached 2.92 million to grab more than half (53%) of the global market share, according to market insights consultancy Daxue Consulting.
AlixPartners found that Europe briefly overtook China as the world’s largest EV market in 2020, with sales of 1.4 million compared to the latter’s 1.3 million. Although this lead was ultimately short-lived—China retook Europe the following year—it still presents Europe as a leading force in the EV revolution. “Europe is not only the birthplace of batteries, but also our scientists have significantly contributed to make modern lithium batteries a reality,” says Franciso Cerranza, Chief Executive for Basquevolt, at the Building a Secure Future for EV Production in Europe Financial Times event. Basquevolt is a battery cell and energy storage start-up that aims to become a leader in solid-state batteries. But in the face of escalating global competition, for how long can the region maintain its relevance?
Major transformation
“We need to consider that there is currently a major transformation of the industry,” says Carranza, referring to electrification. Companies that previously focused exclusively on internal combustion engines (ICE) will need to shift towards electric powertrains to meet Europe’s 2040 climate neutrality goals. This is beginning to take place for companies such as French automaker Renault, which announced its decision to split the company into two in May 2022—one half for ICE and one for EVs.
