The EU will expand the production of vehicle batteries and pharmaceutical products in

Source: Nikkei Chinese Network

The European Union (EU) will fundamentally change the procurement methods in strategic fields such as pure electric vehicles (EV) batteries and pharmaceutical products.Previously, production costs have been reduced through international division of labor, but due to the expansion of the new crown epidemic, the impact of the supply chain of the new crown epidemic has become difficult.The European Union will promote the production of suppliers' diversification and important parts, and establish a system that does not rely on third countries such as China.

The European Union's policy financial institution European Investment Bank (EIB) released news on May 19 that it invested 1 billion euros of the European Battery Alliance (EBA) projects within 2020.Like the Airbus of Airbus gathered in the European aviation industry, the European Battery Alliance brings together the European battery industry, known as the battery version of the airbassed buses.The alliance was established in 2017 to strive to achieve large -scale production of pure electric vehicle batteries through European companies.

In terms of the annual capacity of pure electric vehicles for lithium -ion batteries, the EU is less than one -10th in China.The European Union will promote the construction of factories in its own region, and by 2024, it will increase its global share to more than two times in 2019 and reach about 15 %.

In January, the French Peugeot Citroen Group decided to join the battery company under France's Da Dal to establish a large -scale battery factory.Including EU subsidies, the investment as of 2030 is close to 5 billion euros.

Most European auto manufacturers purchase pure electric vehicle batteries from Asian countries such as China.The lithium that becomes a battery raw material is seriously dependent on South America and Australia, cobalt depends on Africa, and graphite is obviously dependent on China.If trade friction or political turmoil occurs, the supply may be interrupted.

Therefore, European investment banks will support 4 projects that produce lithium in the European Union region by maximum 80 % of the demand by 2025.EU executive agency's Vice Chairman of the European Commission, Safcovich, emphasized that the new crisis has pulled the focus of attention to the need to increase the independence of European strategy in important fields and innovative technologies.

The European Commission will propose a rules and solutions for battery production and utilization to the member states by October. By 2022, it will make it obligations to respond to the need for pure electric vehicles in 2023.The details of the rules and schemes are not disclosed, but it seems that environmental protection policies will be introduced to in fact preferentially treated EU products.

In addition, the adjustment of the European Union in the field of pharmaceutical products will also accelerate.In a statement issued by the leaders of France and Germany on May 18, the development of strategic lsquo; health sovereignty RSquo; and the 4 issues that should be promoted by the European Union were initially included in the health and medical reform.Proposed the development and production and common reserves of vaccines and therapeutic drugs in the region to reduce dependence on other regions.

The supply chain breaks caused by the new crown epidemic and the export restrictions of various countries have increased the sense of crisis of the European Union.In France, as of early April, the demand for masks with high anti -virus effect reached 45 million per week, but the production capacity was only 7 million.In addition, it is impossible to import, and medical institutions have a serious short gap.In April, the European Commission requested India to relax the export restrictions of about 10 drugs such as Paracetamol with analgesic effect.

European media reported that European pharmaceutical companies produced a large number of products in India, and 70 % of basic materials were imported from China.By the end of the year, the European Commission will release a medical strategy, which plans to include the diversification of the procurement of materials, and at the same time require pharmaceutical companies to promote the production of production in the EU region.

Before the new crown epidemic, the European Union has gradually relaxed the subsidy regulations and has been supporting competitive companies.Promoting production in the EU region is consistent with the EU's generous needle to build European ace companies.In 2019, the European Commission rejected the railway vehicle business consolidation plan of Siemens and Alstom, France, as an opportunity to start the movement of amendments to the competition (antitrust law).It can also be seen that the European Union intends to build a global competitive enterprise.

Realizing the crisis of supply interruption and asking enterprises to return to the local area to make the movement of production more and more obvious.The Times of the British reported on May 22 that British Prime Minister Johnson had issued instructions to require plans to formulate no longer relying on China in procurement of medical supplies.

However, production in areas such as Europe with high labor expenses may cause product prices to rise and bring adverse effects to consumers.Although the European Commission member Breton (responsible for the market in the European Union) calls on the European Union in mid -May to support open trade, there is still a risk of economic blockade.