EV focus leaves Europe vulnerable

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【Summary】BMW CEO Oliver Zipse believes Europe's focus on electric vehicles (EVs) leaves the region vulnerable to blackmail from resource suppliers. Zipse argues that internal combustion engines and hydrogen fuel cells allow for greater self-sufficiency in car production, while EVs heavily rely on international supply chains. He criticizes the lack of a comprehensive strategy for alternative engines and highlights Europe's low acceptance of domestic mining projects as a structural problem.

FutureCar Staff Sep 04, 2023 6:16 AM PT

German carmaker BMW has stated that only internal combustion engines or hydrogen fuel cells allow Germany and Europe to produce cars "almost self-sufficiently," as battery-driven vehicles heavily rely on international supply chains. In an interview with business newspaper Handelsblatt, BMW's CEO Oliver Zipse expressed concerns that Europe is leaving itself vulnerable to blackmail from resource suppliers by solely focusing on electric mobility.

Zipse criticized the decision to end combustion engines without a simultaneous entry strategy for alternative engines, calling it reckless. He emphasized that the production of electric cars can only be scaled up if access to raw materials is secured, highlighting Europe's structural problem due to low acceptance of new domestic mining projects.

The carmaker's CEO also suggested that tighter CO2 emissions regulations 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 successfully developed competitiveness in the budding e-car industry.

Zipse noted that Germany, in collaboration with the EU, is increasingly taking a different approach, deviating from its previous strength in the industry. While the production of combustion engines can largely be carried out with materials available in Europe, the fossil fuels required for conventional combustion engines are predominantly imported from non-EU suppliers like Russia, Saudi Arabia, and Nigeria.

According to the Federal Institute for Geosciences and Natural Resources (BGR), approximately 98 percent of Germany's primary mineral oil consumption had to be imported in 2021. To address this issue, both the EU and the German government have implemented measures to increase access to raw materials needed for electric mobility. These measures include establishing deals with new suppliers, potential state-managed stockpiling, and improved recycling mechanisms to recover valuable materials used in industrial products.

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