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EV focus leaves Europe vulnerable

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【Summary】BMW CEO Oliver Zipse warns that Europe's heavy reliance on international supply chains for battery-driven electric vehicles leaves the continent vulnerable to blackmail from resource suppliers. He argues that a political decision to end combustion engines without a simultaneous strategy for alternative engines is reckless. Zipse highlights the need for secure access to raw materials to scale up electric vehicle production and calls for more domestic mining projects.

FutureCar Staff    Sep 03, 2023 9:14 AM PT
EV focus leaves Europe vulnerable

German carmaker BMW has stated that internal combustion engines and hydrogen fuel cells are necessary for Germany and Europe to produce cars "almost self-sufficiently". The company's CEO, Oliver Zipse, expressed concern that battery-driven vehicles rely heavily on international supply chains, making Europe vulnerable to blackmail from resource suppliers if it solely focuses on electric mobility. Zipse criticized the decision to phase out combustion engines without a corresponding strategy for alternative engines.

Zipse argued that the production of electric cars can only be expanded if access to raw materials is secured, highlighting Europe's structural problem due to low acceptance of domestic mining projects. He suggested that tighter CO2 emissions regulations for the fuel industry could make the car sector more climate-friendly with combustion engines. Zipse pointed to China's integrated strategy supported by the government, which has contributed to the development of a competitive electric car industry.

Germany, which used to have a strength in this area, is increasingly diverging from the approach taken by the EU, according to Zipse. While the production of combustion engines can largely rely on materials already available in Europe, the fossil fuels required for conventional combustion engines are predominantly imported from countries outside the EU, such as Russia, Saudi Arabia, and Nigeria. In 2021, about 98 percent of Germany's primary mineral oil consumption had to be imported.

To address the raw material needs for electric mobility, both the EU and the German government have implemented measures. These include securing deals with new suppliers, potential state-managed stockpiling, and improved recycling mechanisms to recover valuable materials used in industrial products.

This article was originally published on Clean Energy Wire and is reproduced with permission.

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