BRUSSELS (dpa-AFX) - The European environmental organization Transport & Environment (T&E) is calling for greater support from Brussels for independent car battery production in the EU. By 2027, it said, the community of nations could end its dependence on lithium-ion batteries from Chinese manufacturers. However, manufacturers such as U.S. electric pioneer Tesla and Swedish start-up Northvolt could also turn even more toward the U.S. given high subsidy opportunities in the United States, according to a report released Tuesday by the organization.

Half of the lithium-ion batteries used in the EU are also already made in Europe, it said. "But the Inflation Reduction Act has changed the rules of the game," said T&E Germany chief Sebastian Bock, referring to U.S. subsidies. "More funding needs to be provided in Europe or we risk losing planned battery factories and jobs to America."

The U.S. has promised significant subsidies for e-car and battery makers in the Inflation Reduction Act if they invest in the United States. In Europe, battery makers such as Chinese industry giant CATL, the Koreans at Samsung SDI and the Swedes with Northvolt have announced billion-dollar investments. Automakers such as Volkswagen, Mercedes-Benz and Stellantis are also investing money in cell plants, while others such as BMW are placing large orders with battery suppliers.

However, President Joe Biden's U.S. stimulus package threatens to shift the balance of power toward the United States. There are doubts as to whether Northvolt, for example, will still build a factory in Schleswig-Holstein as previously planned. T&E is calling for a European development fund financed by the joint issue of bonds. Through this, only products also subsidized by the Inflation Reduction Act, such as electric cars, batteries and renewable energies, should receive funding. The money should flow directly to companies, T&E says, to prevent the slow drawdown of funds seen with other subsidy instruments./men/lew/mis/DP/jha