July 2023 – Stifel IRIS is pleased to present “EV Pulse Never Stops, Industry Powers Up”, an industry brief exploring the state of electric vehicle adoption in Europe and the strategies needed to meet the continent’s electrification and industrial goals amid intensifying global competition.

As the EU sets its sights on ending sales of combustion engine cars by 2035, over €300bn in investment commitments are already shaping a new industrial ecosystem for passenger EVs. Yet, accelerating from ambition to execution will require coordinated efforts across industry, policymakers, and financial actors.

Battery value chains are front and center
Europe’s EV transition depends heavily on securing a reliable, localized battery supply chain. More than 50 battery gigafactories are planted across the EU, but challenges remain around raw material sourcing, cell manufacturing, recycling, and regional disparities. The success of these efforts will determine Europe’s autonomy and competitiveness in the EV space.

Manufacturers are ramping up, but gaps persist
OEMs and tier-one suppliers are investing in production capacity, R&D and electrified platforms, but face mounting pressure from Chinese and U.S. players who are scaling faster and securing larger market shares. Europe must now focus on fostering innovation, lowering production costs, and ensuring seamless integration across its automotive hubs.

Financing the transition remains key
Policy support – from the EU Green Deal to the Inflation Reduction Act response – must translate into real financing solutions to derisk early-stage projects and incentivize scale-up. Dedicated funding tools for EV infrastructure, strategic raw materials, and circular economy initiatives will be essential.

To succeed, Europe must align industrial policy with capital markets and fast-track decision-making at all levels. Timing is critical: by 2025, global EV production will surpass 30 million units annually, and strategic leadership today will define long-term market relevance.

To explore the full analysis and understand what it will take for Europe to lead in EV innovation and manufacturing, download the industry brief below.