COP30: Batteries

Recommendations

• Reduce the carbon footprint. Establish global requirements for low-emission production and minimal environmental impact throughout the entire battery value chain.
• Strengthen research and innovation. Prioritise more sustainable Li-ion solutions, new battery chemistries, next-generation battery technologies and improved recycling.
• Implement international standards. Develop certifications for climate and environmental footprint, material origin and recycled content.
• Promote industrial scale-up. Simplify permitting and financing schemes to accelerate production start by new companies.
• Enhance and expand Nordic cooperation. Strengthen incentives and instruments for joint research and industrial projects across the Nordic region.

Current situation

Batteries are a key technology for the transition to a low-emission society. They enable zero-emission transport and help balance power grids by storing energy when wind and solar production is high. They also contribute to frequency regulation and peak-shaving, which can limit the need for costly grid expansion — particularly in areas with constrained capacity. According to COP29 estimates, global battery capacity must increase sixfold between 2022 and 2030 to support electrification. Batteries will also play a crucial role in energy storage for microgrids in low- and middle-income countries.

Currently, the market is dominated by lithium-ion (Li-ion) batteries, which are used in electric vehicles and increasingly in stationary energy storage systems. Production is heavily concentrated in Asia — particularly in China, which also controls large parts of the supply chain for raw materials such as lithium, cobalt and graphite. This dependency creates vulnerability amid rising geopolitical tensions and trade restrictions. Recent developments, such as China’s export controls on high-energy batteries and battery manufacturing equipment, and the potential repeal of the Inflation Reduction Act (IRA) in the United States, further weaken the position of Western producers.

Europe has sought to build a competitive battery industry, but progress has been slow due to high costs, lengthy regulatory processes and strong price competition from Asia. Establishing large-scale battery factories requires substantial capital and rapid facilitation — processes that currently take significantly longer in Europe than in China.

China also dominates export of raw materials for battery cell production. The new EU Critical Raw Materials Act lists many of the key materials that are essential to current battery technologies, especially within Li-ion systems. In addition, circular value chains are not yet well developed and cannot currently support a rapidly growing battery industry. Asian — particularly Chinese — dominance thus poses challenges for security of supply, carbon footprint and sustainability. The EU Battery Regulation sets stringent requirements for sustainability, recycling and documentation throughout the value chain. This includes digital “battery passports,” information on carbon footprint, material origin and the share of recycled content. The requirements will be phased in gradually until 2027 and will affect producers, importers and waste operators across Europe. The goal is to establish a circular, competitive European battery industry that creates value while reducing environmental impact.

Solution

Batteries will be a cornerstone of the future zero-emission energy system — both for transport and for integrating renewable energy. To achieve this, technological development, industrial scale-up and sustainable value chain design must go hand in hand.

Research and development should focus on improving existing lithium-ion technologies and developing next-generation batteries such as sodium-ion, solid-state and recyclable systems. New technologies must be safer, less resource-intensive and based on more accessible raw materials. Batteries will also be a vital component of future hybrid energy systems — for example, in combination with hydropower in hybrid plants, where environmental concerns limit flexibility.

In parallel, local value chains for battery production must be established in Europe and the Nordic region — from raw material extraction to recycling and reuse. This will reduce dependency on imports from unstable markets and strengthen energy and supply security. The Nordic countries have particular advantages in this regard, including access to renewable energy, critical raw materials and high technological competence.

Faster permitting processes, stable policy frameworks and targeted incentives are essential to attract investment. Closer collaboration between research institutions, industry and authorities — both nationally and across the Nordic region — can help build a competitive battery sector aligned with the EU’s green industrial strategy. For Europe and Norway, the competitive edge will not primarily be in price, but in sustainability, safety and verified traceability. Production based on renewable energy and circular solutions can become a distinct brand — and a strategic export advantage.