'Surviving Without China'... The Supply Chain Restructuring Battle Sweeping EU Industry

\r[The Financial News] Analysts say the key focus of European industry has rapidly shifted from carbon neutrality to supply chain security and energy sovereignty after the Russo-Ukrainian war and risks in the Middle East. In particular, as the European Union (EU) strengthens its de-China strategy through tariffs, supply chain regulations, and the Battery Passport, the battery and energy sectors are being reshaped into de facto national security industries.
European companies that took part in the 'EU Business Hub - ENVEX 2026' held at COEX Convention & Exhibition Center in Seoul from the 20th to the 22nd told this paper in interviews that the biggest changes in European industry are the expansion of local supply chains and a reduced dependence on China.
David Brown, CEO of Finnish battery company Broadbit Batteries, said, "One of the most important discussions in Europe right now is a battery supply chain without China," adding, "Supply chain stability, security, and even employment are all connected."
Brown said the current European battery market is overly dependent on Chinese products. He noted, "Ten years ago, South Korea and Japan accounted for a large share, but now Chinese products make up a very high proportion," and added that tariffs, supply chain regulations, and the Battery Passport are likely to increasingly limit such import dependence.
The Battery Passport is a system that records and tracks where a battery was made, what raw materials were used, how much carbon it emits, and how recyclable it is, encouraging the development of a certain level of local supply chains. Through this, the EU aims to gradually expand the share of battery supply chains within the bloc.
Brown said, "The battery industry is currently one of the EU's top strategic priorities," and added, "The EU continues to provide large-scale support for AI, semiconductors, and battery industries through programs such as Horizon Europe. Batteries have now become a national security industry."
French biomass solutions company Haffner Energy also said the key phrase in Europe's energy industry has shifted from decarbonization to energy independence.
Marella Franci, Head of Energy Business at Haffner Energy, said, "In the past, the key word in Europe's energy industry was decarbonization, but now energy resilience and energy independence have become much more important issues." He explained that countries are especially beginning to focus on energy that can be produced directly in their own regions, or local energy.
"Canada has also recently shown interest in our technology as geopolitical uncertainty has raised concerns over dependence on US energy," Franci said. "The strength lies in the ability to produce energy directly within the region."
He added, "This means reducing dependence on complex global supply chains," and said, "The recent risks in the Middle East have also made people more aware of the importance of local production."
whywani@fnnews.com Hong Chaewan Reporter