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Europe has invested €200 billion so far to boost EV sector, report says

Automotive News Europe — 2026-05-11

Automotive Industry

Countries of the European economic area and Switzerland have committed almost €200 billion ($235 billion) of investments into their electric vehicle ecosystem, data from New Automotive showed.

Investments were mainly focused on the battery supply chain, with €109 billion engaged so far, as the continent tries to challenge a Chinese monopoly on battery production.

China manufactured more than 80 percent of all the batteries made in 2025, also those used outside the EV sector, the International Energy Agency said earlier this year.

“Europe now produces batteries for roughly one in three EVs sold domestically, and announced capacity could meet future demand if fully utilized,” New Automotive said.

Some €60 billion were invested in EV manufacturing, centered on the conversion of legacy automotive plants alongside selective new EV-only facilities, said the research body whose stated mission is to accelerate the switch to electric cars.

Investments in charging infrastructure covered between €23 billion and €46 billion of public roll-out, with over 1 million public charging points having been deployed across Europe. More than €3.5 billion were invested in the manufacturing of this infrastructure.

“These investments support more than 150,000 jobs, with a further 300,000 jobs expected if all announced projects are fully realized,” Chris Heron, secretary general of campaign group E-Mobility Europe, said about the report in a separate statement.

New Automotive’s report, however, showed a disparity on the national level, with major auto producer Germany accounting for almost a quarter of the region’s investments.

“The country anchors both domestic production and wider European value chains, with leading OEMs transitioning at scale alongside major international battery manufacturers,” New Automotive said.

The European Commission unveiled a plan in December to drop the European Union’s effective ban on new combustion-engine cars from 2035 after pressure from the region’s auto industry, marking the bloc’s biggest retreat from its green policies in recent years.

Heron said that Germany, Italy and Central and Eastern Europe have formally opposed the EU’s 2035 cars and vans framework, while more than half of the tracked investments are concentrated in these regions.

“France and Spain stand out as other major beneficiaries (of the investments),” he added.