Europe is stepping up the race for electric vehicles with an industrial plan worth nearly €200 billion. The goal is to build an autonomous and competitive supply chain capable of reducing dependence on Asia — particularly China, currently the global leader in the battery sector. The scale of the investments is outlined in a new report by New Automotive, according to which countries in the European Economic Area and Switzerland have already committed substantial resources to the electric mobility ecosystem.

At the heart of the European strategy is battery production, considered crucial for the future of the continent’s automotive industry. So far, €109 billion has been allocated to the development of facilities and technologies for electric batteries, in an effort to close the gap with China, which – according to the International Energy Agency – in 2025 surpassed 80% of global battery production, including batteries used outside the automotive sector.

Today, Europe’s production capacity covers about one third of domestic demand for electric vehicle batteries. However, according to New Automotive, projects already announced could enable Europe to fully meet future demand, provided that all planned investments are actually carried out.

At the same time, the transformation of manufacturing plants is also accelerating. Around €60 billion has been invested in converting traditional automotive factories and building new facilities dedicated exclusively to electric vehicles. This industrial revolution involves Europe’s leading carmakers, all engaged in the transition toward zero-emission mobility.

The impact on employment

The importance of charging infrastructure is also growing, as it is considered essential to support the widespread adoption of electric vehicles. Public investments in the sector range between €23 billion and €46 billion and have already contributed to the installation of more than one million public charging points across Europe. In addition, more than €3.5 billion has been allocated to the production of the charging infrastructure itself.

According to Chris Heron, Secretary General of E-Mobility Europe, the economic impact of the new supply chain is already tangible in terms of employment, with investments supporting more than 150,000 jobs and potentially generating another 300,000 if all announced projects are completed.

The analysis highlights a strong geographical concentration of investments. Germany, Europe’s industrial powerhouse, alone accounts for nearly a quarter of total resources. According to New Automotive, Berlin represents the continent’s main electric mobility hub thanks to the presence of major car manufacturers and leading international battery producers.

Innovative technologies for the production and recycling of electric and hybrid vehicles for the automotive, transport, and industrial sectors will be showcased at E-Tech Europe, taking place from October 7 to 9, 2026, at BolognaFiere as part of Urban Tech 2026 – The Urban Technology Show, the new event dedicated to e-mobility, traffic, commuting, security, telecommunications & data, and the environment.