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Europe First: how Brussels is retooling industrial policy

In a patch of woodland 100km west of Stockholm, an entirely new industry for Europe is taking shape. Inside a grey box structure hundreds of workers are rushing to complete the first big European-owned production line for battery cells to be used in electric vehicles, grid networks and many other areas.

With production due to begin by the end of the year, the Northvolt site in Vasteras, central Sweden, is buzzing with activity. But the yellow tape cordoning off certain areas bears the words “limit line” in English and Japanese — one indication that Northvolt has had to tap Asian expertise in research and development to build its facility.

European carmakers were slow to respond to the electric vehicle revolution and are almost entirely dependent on imported battery cells. Global production is dominated by Japan’s Panasonic, South Korea’s Samsung and CATL and BYD of China. European factories account for only 3 per cent and they are mostly Asian-owned.

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