For the last 10 years mobility is in a state of disruption concerning innovation, new business models and demand shifts. 15 years ago, I vividly remember conversations with managers in the car industry insisting on the long-term dominance of the internal combustion engine in comparison to electric vehicles. They challenged the future of electric vehicles referring to limited range, the costs of the batteries and the necessary infrastructure.

Today, the range has increased, and costs of the batteries and the infrastructure are continuously decreasing so that the global shift towards electrified mobility is a key component of modern transportation and climate policies. The urgency to transition stems from climate concerns, rapid technological advancements, and economic transformations that emphasize electrification, automation, and alternative fuels such as hydrogen. While Europe has been one of the pioneers in regulatory frameworks, the speed of implementation of innovative mobility solutions needs to keep pace to match an increasingly challenging global competitive environment.

This article evaluates Europe’s approach to electrified mobility, comparing it with other regions, and proposes measures for a potentially more effective transition.

Europe’s Policy-Driven Path to Electrified Mobility

The European Green Deal and Fit for 55 Package mandate a 55% reduction in CO₂ emissions by 2030 and a ban on new combustion engine vehicles by 2035, which is currently challenged by the European Car Manufacturing Association. Supporting initiatives, such as the Alternative Fuels Infrastructure Regulation (AFIR), aim to expand EV charging and hydrogen refuelling infrastructure by 2030 (European Commission, 2024).

AFIR sets binding targets for member states to ensure the widespread availability of alternative fuel infrastructure, such as electric vehicle (EV) charging stations and hydrogen refuelling points, along key transport corridors and urban centres. Specifically, it mandates amongst others that by 2025, major highways should have at least one fast-charging station every 60 kilometres and hydrogen refuelling stations every 200 kilometres. By 2030, comprehensive coverage is expected to extend to all main roads and transport hubs.

AFIR also promotes interoperability between charging networks by standardizing payment systems and technical specifications to facilitate seamless cross-border travel within the EU.

In addition, this regulation encourages private sector investment by providing funding incentives and reducing administrative barriers to infrastructure deployment.

Despite these ambitious goals, challenges persist, including delays in permitting, inconsistent implementation across member states, and a lack of harmonized policies regarding grid capacity expansion to support the increased electricity demand from widespread EV adoption (Sustainable Transport Forum, 2023; ACER, 2024; WindEurope, 2024). However, if implemented effectively, AFIR has the potential to accelerate the transition towards electrified mobility by ensuring that charging and refuelling networks keep pace with EV adoption rates across Europe.

However, as of end 2023, despite over 632,423 public charging points installed (European Automobile Manufacturers Association (ACEA), 2024), significant gaps remain, especially in rural areas. EU funding programs like the Connecting Europe Facility (CEF) and InvestEU provide additional financial assistance (European Commission, 2025a) yet delays in funding approvals and bureaucratic inefficiencies hinder faster deployment.

Battery Development: A Critical Challenge

Despite strong policy initiatives, Europe struggles to establish itself as a leader in battery technology and production. The European Battery Alliance (EBA), launched in 2017, aimed to reduce dependency on foreign battery suppliers, but Europe still lags behind China and the U.S. in large-scale production. The European Battery Regulation (European Commission, 2023) emphasizes sustainability and recycling but lacks mechanisms for scaling up European firms to compete globally.

Investment struggles persist despite EU funding through Important Projects of Common European Interest (IPCEI) and research programs like Horizon Europe and Battery 2030+, and gigafactories face delays due to bureaucratic red tape. Global competition is fierce, with China being strong on battery supply chains with over 70% of global battery production (IEA, 2024), and the U.S. Inflation Reduction Act (IRA) having attracted massive investment in battery manufacturing.

Additionally, Europe remains heavily dependent on raw materials from abroad, sourcing approximately 81% of its extracted lithium and 100% of its processed lithium externally. Efforts to develop domestic mining projects have encountered significant permitting delays. For instance, in Portugal, Savannah Resources has postponed the expected start date for production at its lithium project in the Barroso region to 2027 due to regulatory uncertainties and procedural delays (Mining.com, 2024). Similarly, in Finland, various lithium mining initiatives have faced prolonged permitting processes, hindering timely development.

The European Union’s Critical Raw Materials Act European Commission (2025b) aims to address these challenges by streamlining permitting procedures and reducing reliance on external sources (Euronews, 2024).

Barriers to Electrified Mobility in Europe

Despite strong regulations, Europe faces significant challenges that impede the widespread adoption of electrified mobility. Bureaucratic inefficiencies are one of the most persistent issues, as slow approval processes for EV infrastructure and battery manufacturing plants delay expansion efforts.

The fragmentation of policies across EU member states further complicates standardization and implementation, creating regulatory inconsistencies. Infrastructure gaps present another substantial barrier, particularly in rural and economically weaker regions, where charging station deployment remains limited. Unlike China, which has installed 85% of the world’s fast chargers and continues to expand its EV infrastructure aggressively (IEA, 2024), Europe’s charging network expansion is hindered by lengthy permitting procedures and high costs.

In addition, affordability remains a core issue, as European EVs tend to be significantly more expensive than their Chinese counterparts. The cost of production, higher labour wages, and stringent safety and environmental regulations contribute to the higher prices of European EVs. Meanwhile, Chinese manufacturers such as BYD and SAIC have developed cost-effective models that are 30-40% cheaper than many European alternatives, giving them a competitive advantage in both domestic and international markets. If European automakers fail to develop more affordable EV options, consumer adoption may stagnate, thereby delaying the continent’s mobility transition.

Additionally, the growing reliance on EVs places increasing pressure on the power grid, necessitating substantial investments in smart grid technologies and energy storage solutions to prevent potential disruptions in electricity supply.

Lessons from the U.S. and Asia

The United States presents a market-driven approach to electrified mobility, which fosters rapid innovation and investment in new technologies. Companies like Tesla have significantly influenced the industry, pushing legacy automakers such as General Motors and Ford to accelerate electrification efforts.

The Inflation Reduction Act (IRA) has played a pivotal role in incentivizing EV manufacturing, battery production, and charging infrastructure development, attracting both domestic and foreign investment (U.S. Department of Transportation, 2025). One of the key strategies the U.S. employs is state-level leadership, particularly in California, where mandates requiring all new vehicles sold by 2035 to be zero-emission serve as a model for progressive climate policies.

Additionally, the U.S. has made substantial advancements in vehicle-to-grid (V2G) technology, allowing EVs to supply electricity back to the grid during peak hours, enhancing overall energy efficiency and grid stability (EPRI, 2023).

China’s state-led industrial policies have enabled it to become the strongest player in global EV production and infrastructure deployment. The Chinese government has enforced strict New Energy Vehicle (NEV) quotas and invested heavily in charging networks, surpassing its 2025 policy goals by achieving over 35% electric car sales share in major cities.

The strategic alignment of industrial policy, subsidies, and large-scale infrastructure investments has, in addition, resulted in a rapid expansion of battery production capacity. Furthermore, China’s actions towards supply chain control, including securing lithium, nickel, and cobalt resources, have strengthened its position in the global market. Without similar large-scale coordinated efforts, Europe risks falling behind in the EV race.

Japan and South Korea have taken a different path by prioritizing hydrogen fuel cell technology and next-generation battery research. Companies like Toyota and Honda continue to invest in hydrogen-powered vehicles, while South Korea’s Hyundai and LG Energy Solution lead research on solid-state batteries, which promise higher energy density, faster charging, and improved safety. Unlike Europe’s primary focus on lithium-ion battery scaling, Asia’s early investment in next-generation battery technology could grant its automakers a significant long-term advantage in the mobility transition.

Key Measures for Improvement in Europe

To streamline public administration, Europe must establish faster permitting processes for charging infrastructure, as current approvals in countries like Germany and France take up to 24 months. The Netherlands, which has successfully simplified regulations, provides a model that could be replicated across the EU. Bureaucratic barriers related to grid connections also need to be addressed, as regulatory delays prevent the efficient expansion of EV infrastructure.

A stronger industrial strategy is essential to accelerate battery production. Northvolt in Sweden was initially planned to be a leader in European battery manufacturing, but high costs and competition from U.S. subsidies pose significant challenges. Reducing dependency on China for raw materials is critical, as the EU currently is heavily dependent on imported lithium. Accelerating domestic mining projects and investing in battery recycling infrastructure will help Europe secure a more sustainable and self-sufficient battery supply chain.

Expanding EV infrastructure is another crucial priority. Europe needs approximately 6.8 million chargers by 2030, but current progress is insufficient to meet demand. Greater commercial investment in charging networks from companies such as Ionity, Shell, TotalEnergiesseems necessary, alongside streamlined permit approvals to speed up charger installations. Home and workplace charging must also be prioritized, as 70% of EV charging occurs at these locations. Building codes should mandate charging infrastructure in new developments and provide incentives for retrofitting existing buildings.

European automakers should prioritize cost-effective EV models to ensure affordability for consumers. Most current European EVs tend to cater more to the luxury market, while Chinese manufacturers such as BYD and SAIC focus more on the lower cost segment. Expanding the production of sub-€30,000 EVs, such as Volkswagen’s ID.2 and Renault’s upcoming electric R5, is a step in the right direction. Volkswagen’s most recent announcement of a low budget €20,000 car is promising, but the targeted 2027 for bringing the car on the market seems late.

Without addressing cost concerns, European automakers risk losing significant market share to foreign competitors. Additionally, integrating smart energy management solutions like smart charging and vehicle-to-grid (V2G) technology will help balance electricity demand and enhance overall efficiency. Countries such as the Netherlands have already implemented smart charging policies that reduce peak electricity loads by 40%. Denmark and the UK have also demonstrated the benefits of V2G integration, enabling EVs to supply energy back to the grid, reducing strain on power networks.

Conclusion

While Europe provides a strong regulatory push for electrified mobility, industrial execution needs speeding up, costs have to be reduced, and infrastructure deployment has to be faster to keep its global competitiveness. The U.S. model highlights the importance of private-sector innovation and flexible incentives, whereas China’s large-scale investments ensure dominance. Japan and South Korea’s technological focus on batteries and hydrogen offer valuable lessons. To maintain its leadership in sustainable mobility, Europe must accelerate funding approvals, streamline permitting, and balance regulatory ambition with industrial execution. The next three years will determine whether Europe can maintain its position as one of the leaders in electrified mobility.

References

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