BASF will supply battery cathode material to the Chinese group CATL – one of the world’s largest manufacturers of EV batteries. What sounds like a normal industrial deal is, in fact, another warning sign: Europe is far behind in battery technology.

A commentary by Jan Nintemann and Jochen Siegle; Photo: CATL

Because while China has long controlled global supply chains and technologies, the European battery industry is still in its infancy. The BASF-CATL deal shows how heavily European corporations now rely on Chinese partners – even in key areas of the Greentech transformation.

95 Percent China – Europe Watches On

According to SNE Research, 95% of all EV batteries contain Chinese materials. Europe’s industrial policy usually reacts too late, too hesitantly. The deal with CATL brings orders to BASF – but ultimately strengthens China’s market position.
CATL has also been producing in Thuringia since 2022. However, the know-how, processes, and strategic control remain in China.

Missed Opportunities, Lost Time

While projects like Northvolt are faltering or German manufacturers are scaling back their battery plans, it becomes clear: Europe has lost valuable time. CATL CEO Robin Zeng openly criticized European projects in 2024 – “wrong design, wrong processes, wrong equipment”.

As drastic as that sounds – it’s not entirely wrong.

Time for Collaboration Instead of Solo Efforts

Europe needs a common answer to Asia’s dominance. A decentralized industry without a clear strategy will not be enough. It needs alliances – across national borders, between SMEs and corporations, startups and politics.

The TransformIT Europe Trade Fair & Conference provides the platform for this: for genuine knowledge transfer, networked innovation projects, networking, and concrete solutions concerning sustainable digitalization, e-mobility, and greentech.

Conclusion: the Clock is Ticking – Europe Must Act Now

Tomorrow’s future technologies are being created today – but no longer necessarily in Europe. The BASF-CATL deal shows: We no longer have time for solo efforts.
If Europe does not soon seriously pursue its own battery and greentech strategy, others will decide our future.

Sources:

BASF Press Release: https://www.basf.com/global/en/media/news-releases/2025/07/p-25-137