Shulou(Shulou.com)11/24 Report--

CTOnews.com, December 13 (Xinhua) the prospect of the European Union listing lithium as a hazardous substance has heightened concerns in the electric car battery industry that policy makers are not doing enough to attract investment and that the European Union will lose to the United States, which owes part of its appeal to these companies to the inflation reduction Act (IRA), according to the Wall Street Journal.

Tuyuan Pixabay last week, the European Commission was scheduled to make a final ruling on whether lithium, a key battery raw material, should be classified as hazardous. The science department of the committee recommended that it make the ruling. Lithium is a key raw material for batteries. The decision of the EU executive branch has now been postponed to the new year for the second time in months.

CTOnews.com has learned that emerging battery companies in Europe have warned that investors may be attracted to the US from continental Europe, where the inflation reduction Act has created a strong incentive to build supply chains in the country. Industry experts say that if lithium is classified as hazardous, people who deal with lithium will be subject to additional safety measures, which will add significant additional costs to potential lithium refiners and battery manufacturers in Europe. These costs do not exist in the United States, China and the United Kingdom.

Earlier this month, Ursula von der Leyen, president of the European Commission, hinted at concerns about key supply chains and IRA. She said the EU should "simplify and adjust" its rules that restrict state funds to make public investment easier.

For those who want to build an European battery production line, the EU's position on electric cars remains confusing. On the one hand, there are some incentives, such as the critical raw materials law; on the other hand, the proposed listing of lithium as a toxic substance could stifle refining projects and drive away investment.

Richard Taylor, founding director of Trafigura-backed Green Lithium Refining Co., Ltd., said: "Europe is setting up obstacles for companies in this market when other countries such as the United States are opening their doors and removing obstacles. Europe is putting their taxpayers' money into strategically attracting and building battery metal supply chains."

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