In a recent interview Jean-Dominique Senard, President of Renault, expressed his concern about the current situation of the supply chain related to the raw materials needed for EV batteries, where Europe is totally dependent on China. The new restrictions imposed by Beijing could paralyze the electric vehicle industry produced in the Old Continent
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emilianoragoni
That the European auto industry depends on China for the supply of critical components needed for battery production is hardly new. Like the so-called rare earths whose supply is controlled almost entirely by the Dragon Country, which several years ago got its hands on the largest deposits. But what will happen in the near future? As declared in a recent interview by the president of Renault, Jean-Dominique Senard, China’s recent decision to limit exports of two metals such as gallium and germanium, used in semiconductors and electric vehicles, should trigger the alarm for European leaders. The excessive dependence of the Old Continent on China and the need to build an expensive supply chain clearly emerge.
the concern of the president renault
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Senard speaks in rather alarmist terms, defining this new threat, which could undermine the geopolitical balance of the European auto industry, as a “Chinese storm”. These are his words: “We are able to produce electric vehicles, but we are struggling to guarantee the safety of our supplies”. The French executive added that China’s EV industry and raw material supply chain are the result of years of investment that would cost billions of euros to replicate in Europe.
Europe between China and America
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China’s export restrictions are intensifying the tech war with the US, potentially causing further disruption to global supply chains, Senard said. Europe is in the middle of this war, forcing it to look for alternatives. “If there is a real geopolitical crisis, the damage to battery factories equipped exclusively with products from outside will be considerable,” warned Senard. “That’s the real problem.” The development of alternative fuels, such as synthetic fuels and hydrogen, would be critical in the event of a sudden battery shortage due to raw material shortages, Senard said. “As any careful manufacturer would… we are looking for alternatives to avoid crippling the country if, for example, we run out of batteries.”
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