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EV focus leaves Europe vulnerable to blackmail

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【Summary】BMW CEO Oliver Zipse believes that Europe's focus on electric vehicles (EVs) leaves the continent vulnerable to blackmail from resource suppliers. Zipse argues that combustion engines or hydrogen fuel cells are necessary for Europe to achieve self-sufficiency in car production, as EVs rely heavily on international supply chains.

FutureCar Staff    Sep 03, 2023 10:13 AM PT
EV focus leaves Europe vulnerable to blackmail

German carmaker BMW has stated that only internal combustion engines or hydrogen fuel cells allow Germany and Europe to produce cars "almost self-sufficiently". According to BMW CEO Oliver Zipse, battery-driven vehicles heavily rely on international supply chains, making Europe vulnerable to blackmail from resource suppliers. Zipse believes that a political decision to end combustion engines without a simultaneous entry strategy for alternative engines is reckless. He also highlighted the structural problem in Europe, with low acceptance of new domestic mining projects hindering the development of a more autonomous industry.

Zipse suggested that tighter CO2 emissions regulation for the fuel industry could make the car sector more climate-friendly with combustion engines. He pointed to China's integrated strategy supported by the government, which has led to the development of a competitive e-car industry. Zipse expressed astonishment at Germany's increasing departure from this approach in collaboration with the EU.

While the production of combustion engines can largely utilize materials available at scale in Europe, the fossil fuels required to power conventional combustion engines are predominantly imported from countries outside the EU, such as Russia, Saudi Arabia, and Nigeria. In 2021, about 98% of Germany's primary mineral oil consumption had to be imported, according to the Federal Institute for Geosciences and Natural Resources (BGR).

To address the raw material supply challenge for electric mobility, both the EU and the German government have taken steps to increase access. These measures include securing deals with new suppliers, exploring the possibility of state-managed stockpiling, and improving recycling mechanisms to recover valuable materials used in industrial products.

Source: Clean Energy Wire

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