After decades of global leadership in the automotive industry, Europe has fallen behind its strategic and economic competitors. The EU’s Strategic Dialogue on the Future of the Automotive Industry and anticipated Automotive Action Plan present critical opportunities to tackle these challenges.

In this context, EIES held a discussion on the Future of Europe’s Auto & Battery Industry “Revolutionary Change – Or Extinction” Michael Dunne, Founder Dunne Insights LLC, Jos Dings, former Director Public Policy and Business Development EMEA, Tesla, and Fabrice Stassin, Secretary General, BEPA - Batteries European Partnership Association (BEPA) discussed a European roadmap towards strategic autonomy and a stronger European industrial base. Key takeaways include:

🔹 Access to its market is Europe’s key point of leverage over China. Europe should apply principles of reciprocity, which include mandatory joint ventures – with a majority European ownership – and forced technology transfer, which is tracked and re-assessed. Legal clauses that preserve intellectual property should also be considered in state aid allocations.

🔹 Major discrepancies in research and development are holding European companies back. The R&D budget of the largest battery maker is greater than the combined European and member states’ public funding towards research.

🔹 Environmental policy is not a replacement for trade policy. Increasing the 1% tariffs on batteries can protect domestic battery manufacturers from anti-competitive practices and increase revenues. Trade defence mechanisms should anticipate and address circumvention and loopholes.

🔹Tariffs are not a panacea. They should be seen as part of a wider framework “Make, Buy, Protect Europe” that bolsters innovation, agility, technological leadership, and production output while addressing permitting challenges.

If you missed the webinar, rewatch it here: https://www.youtube.com/watch?v=1uaa06yumlY