Batteries News

Merkel Points out Lack of European Union Expertise in Chips, Batteries

merkel european union batteries

Merkel points out lack of European Union expertise in chips, batteries.

German Chancellor Angela Merkel expressed concern that Europe cannot make the semiconductor chips and batteries it needs to compete for the production of cars as well as the development of smart appliances.

Merkel told a summit on the future of innovation in Germany that Europe risked falling behind in areas like quantum computing, chips and batteries, essential for the future of the car industry as it shifts to make more electric vehicles.

Angela Merkel.

If a big bloc like the EU is not in position to create chips, I am not comfortable about that.

“It is not good if you are a car nation and you can’t produce the core component.”

A global chip shortage has hit automakers hard after many cancelled orders when plants were idled during the pandemic. At the same time, demand for chips boomed from consumer electronics makers churning out premium devices for people stuck at home.

READ the latest Batteries News shaping the battery market

Carmakers use chips in everything from computer management of engines to driver assistance systems.

If Europe loses the ability to make chips that are used in internet-connected devices then it makes itself very dependent, particularly on Asia, Merkel noted.

The answer is not necessarily to replicate development in multiple countries, but the pandemic has shown the need for more watertight contracts if the West is to keep outsourcing production of components to less developed countries, she said.

“We need a global discussion about how much reliability we can give each other, or we will have higher costs if we develop something three times,” she said.

The European Union has created a new alliance to support the local production and development of semiconductors to reduce the reliance on foreign suppliers, while U.S. President Joe Biden has proposed $50 billion to boost U.S. semiconductor production.

Merkel bemoans lack of EU expertise in chips, batteries, Berlin, May 19, 2021

batteries news

Get our LinkedIn updates!

Join our weekly newsletter!

Follow us

Don't be shy, get in touch. We love meeting interesting people and making new friends.