How European battery startups can thrive alongside Asian giants

The global battery market is experiencing unprecedented growth and projections show that the sector reach 400 billion dollars by 2030. However, European entrepreneurs often feel left out as they watch Chinese giants like CATL dominate the headlines with Record-breaking IPOs while local champions like Northvolt file for bankruptcy, exposing the harsh realities of competing against established Asian supply chains.

Still, Europe will never be completely independent on green energy and will want to cooperate with Asia. However, the continent has strong demand for local supply, including green energy and critical manufacturing. There are also real competitive advantages available to European green battery startups: proximity to end users, a deep understanding of regulatory requirements and the ability to move quickly into specialized applications.

The question is not whether batteries can be made cheaper than China, but whether better solutions can be created for specific European needs. my company, othernessfound a profitable niche in batteries to power forklifts, lifting platforms and mobile robots operating in industrial facilities. Other startups can also find their niche. Here are our tips for developing a scalable green battery business.

1. Target specialized niches instead of competing at scale

Identify high-value applications where innovation and environmental compliance matter more than unit cost. You can find them in the aerospace, defense, marine, offshore wind, and medical device industries. All of them have high demand for batteries, as well as strict regulatory and manufacturing requirements that favor European manufacturers.

Data centers represent another market where European companies can have an advantage. As hyperscale operators face increasing pressure to meet carbon neutrality commitments, they are looking for suppliers that can demonstrate 15-20% CO2 reduction potential in manufacturing and other sustainability benefits.

2. Use EU regulatory requirements as differentiation tools

Turn compliance into a competitive moat by aligning with the Critical Raw Materials Law, EU Battery Regulation 2023/1542and sustainability reporting standards that Asian mass producers may struggle to meet. Incorporating these capabilities into your core operations from day one creates sustainable differentiation that becomes increasingly valuable as regulations tighten.

Develop expertise in life cycle carbon footprint calculations, sustainable materials sourcing documentation, and end-of-life recycling processes. What starts as compliance becomes a competitive advantage when multinational corporations need suppliers that can navigate European regulatory complexity while demonstrating quantifiable environmental impact.

3. Leverage EU circular economy principles as a competitive advantage

European customers increasingly evaluate suppliers based on total environmental impact, not initial costs. This shift creates opportunities for manufacturers who can measure material recovery rates and lithium waste reduction through advanced recycling technologies and closed-loop systems. Companies that can achieve superior material recovery rates while quantifying environmental benefits will find themselves with sustainable competitive advantages as raw material costs continue to rise globally.

4. Seek European industry partnerships and innovation ecosystems

Europe offers world-class industrial clusters that cannot be easily accessed by Asian competitors. Engage in collaborative projects, partner with local research institutions, participate in EU Horizon Europe programs and take advantage of regional development funds explicitly designed to support strategic technological development.

Consider the advantages of locating within established industry ecosystems where you can access specialized talent, testing facilities and potential customers within the same region. For my company, the support of the Government of Vizcaya in northern Spain was key to generating momentum in our initial development and connecting us with the broader green technology group in the region. Additionally, our participation in PERTE (Strategic Project for Economic Recovery and Transformation) and other collaborative projects helped us push technological boundaries while staying aligned with environmental policy.

5. Focus on total lifecycle value instead of initial costs

While Asian manufacturers optimize unit production costs, European companies can compete on durability, recyclability and regulatory compliance. Develop proprietary battery management systems with advanced optimization and thermal management technologies that deliver superior performance across multiple use cycles. Many businesses that need batteries care more about avoiding downtime than minimizing initial purchase costs. A battery that costs 30% more upfront but offers 50% longer life with predictable maintenance schedules becomes an easy purchasing decision for industrial buyers.

The way forward

Success requires discipline. Avoid the temptation to chase large commodity markets, where you will inevitably lose prices. Instead, focus relentlessly on applications where your European location, regulatory experience and ability to provide specialized solutions create genuine value that customers will pay for.

The goal is not to completely replace Asian suppliers, but to create resilient companies that can work alongside the Asian giants, rather than competing directly on their terms.

It is very likely that European production will cover at least 50-60% of domestic demand by 2030. Market projections suggest that European companies could capture between 25% and 30% of the specialized industrial battery market by 2030 through technological differentiation and regulatory advantages. By focusing on our strengths, we will create resilient companies that can work alongside Asian suppliers. Together we can produce the best green energy storage structure for Europe.