EU targets Chinese battery giants with tech transfer requirement

The British newspaper indicates that this requirement will initially apply to investors seeking battery manufacturing grants. However, EU sources suggest that this system could be extended to other sectors in the future.

The "FT" notes that this strategy reflects Beijing's approach, where foreign companies must share their intellectual property with China to gain market access.

The newspaper highlights that these requirements are part of several measures Brussels has implemented to strengthen the EU's green technology industry.

In October, the EU introduced new tariffs on electric cars imported from China.

In September, the EU imposed stricter requirements on green hydrogen producers seeking subsidies. To qualify, the electrolyzers used to produce fuel must contain no more than 25% Chinese components.

The "FT" notes that this strategy is beginning to show results. Chinese CATL, the world's largest manufacturer of electric vehicle batteries, is constructing its first factories in the EU – situated in Hungary and Germany. A Shanghai-based wind turbine manufacturer has also announced investments in Spain and France. At the same time, however, many European green technology firms are struggling financially. One such company is the Swedish battery manufacturer Northvolt, which announced in October that its subsidiary, Northvolt Ett Expansion AB, had filed for bankruptcy.

According to the FT, if President-elect Donald Trump follows through with his plan to impose 60% tariffs on Chinese imports, Beijing could redirect some exports intended for the USA to the EU. The newspaper argues that this might prompt the EU to expand its measures further to protect its industries from Chinese competition.