BMW chief warns Europe vulnerable to blackmail due to EV focus

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【Summary】BMW CEO Oliver Zipse warns that Europe's focus on electric vehicles (EVs) leaves the region vulnerable to blackmail from resource suppliers. Zipse argues that combustion engines or hydrogen fuel cells are necessary for Europe to produce cars self-sufficiently, as EVs rely heavily on international supply chains. He criticizes the lack of a simultaneous entry strategy for alternative engines and highlights the low acceptance of domestic mining projects in Europe.

FutureCar Staff Sep 03, 2023 11:14 PM PT

BMW chief warns Europe vulnerable to blackmail due to EV focus

German carmaker BMW has stated that only internal combustion engines or hydrogen fuel cells allow Germany and Europe to produce cars "almost self-sufficiently". The company's CEO, Oliver Zipse, expressed concerns about the heavy dependence of battery-driven vehicles on international supply chains, stating that Europe is leaving itself open to blackmail from resource suppliers by betting solely on electric mobility. Zipse criticized the decision to end combustion engines without a simultaneous entry strategy for alternative engines, emphasizing the need for secure access to raw materials for scaling up the production of electric cars.

Zipse argued that Europe faces a structural problem due to low acceptance of new domestic mining projects, making it even more challenging to develop a more autonomous industry. He highlighted the importance of tighter CO2 emissions regulation for the fuel industry, stating that it could make the car sector more climate-friendly with combustion engines. Zipse also pointed to China's integrated strategy supported by the government, which has demonstrated the development of competitiveness in the e-car industry.

Germany, in interaction with the EU, is increasingly taking a different approach, deviating from its previous strength in this area, according to Zipse. While the production of combustion engines can largely be carried out with materials already available at scale in Europe, the fossil fuels required for conventional combustion engines are predominantly imported from suppliers outside of the EU, such as Russia, Saudi Arabia, or Nigeria. In 2021, about 98 percent of Germany's primary mineral oil consumption had to be imported, according to the Federal Institute for Geosciences and Natural Resources (BGR).

To increase access to raw materials needed for electric mobility, both the EU and the German government have taken steps such as establishing deals with new suppliers, exploring possible stockpiling managed by the state, and improving recycling mechanisms to recover valuable materials used in industrial products.

This story was originally published at Clean Energy Wire and is reproduced with permission.