Cathode production remains one of Europe's weakest points in the battery supply chain, and July brought two distinct attempts to close the gap, according to New AutoMotive's latest battery supply chain tracker. BASF and CATL signed a framework agreement on 29 July under which BASF will supply cathode active materials to the battery maker through its global manufacturing network. The deal strengthens demand for BASF's European facilities and ties an established chemicals producer to the expansion plans of the world's largest battery manufacturer.
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In Spain, Gotion and the government have formally launched a €940 million cathode and recycling complex in Valladolid, backed by €138 million from the PERTE VEC programme. Construction is due to begin in 2027. The plant combines cathode production with a large-scale recycling line capable of processing up to 200,000 tonnes of battery material a year, giving Spain a domestic foothold in a segment currently dominated by Asian suppliers.
Same pressure, different routes
The two deals point to different routes toward the same goal. BASF's agreement extends existing Western capacity to serve Chinese demand; Gotion's complex builds Chinese-founded manufacturing directly inside the EU, underwritten by state funding. Both responses reflect the same underlying issue of European cell manufacturers‘ need for cathode material, and the region does not yet produce enough of it.
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The wider battery supply chain continued to develop elsewhere in July. In Portugal, Savannah Resources completed the definitive feasibility study for its Barroso lithium project, Europe's largest spodumene deposit, moving the project toward a targeted construction start in 2027. Sweden's Talga began commercial anode deliveries to Nyobolt, the first exports of natural graphite anode material produced outside Asia, while in Germany, Lyten signed an exclusive memorandum of understanding to acquire the former Northvolt Drei site in Heide, adding to the Swedish assets it acquired earlier this year.
Passport registry goes live
On the regulatory side, the European Commission launched its Digital Product Battery Passport Registry on 20 July, a step toward mandatory battery passports for EV and industrial batteries from February 2027. Governments and manufacturers are increasingly shifting attention from legislation to implementation, with recycled content and supply chain transparency now the focus as the deadline approaches. (TF)
