Compared with China and the US, Europe’s upstream and downstream footprint in the global battery supply chain footprint is small. No major critical mineral used in the sector is mined or processed primarily on the continent, nor are cathode, anode or cell development and installation centred on the continent. However, a package of policies under the EU’s Industrial Accelerator Act (IAA) is looking to boost its manufacturing presence in the industry, required if Europe is to meet more of its own demand for electric vehicles (EVs) and battery energy stationary storage (BESS), both of which are anticipated to grow significantly through to 2040.

Battery cell prices fell across nearly every grade in Q3 2026, but the path differed sharply by format. For instance, Benchmark’s LFP Prismatic 314Ah EXW China and CIF Europe prices ended the quarter lower after a pronounced July spike, Benchmark’s LFP Prismatic 314Ah CIF North America prices were broadly unchanged, and the Benchmark Lithium Ion Battery Global price closed the quarter at its lowest level of the period. "Overall, Q3 was defined by the delayed transmission of lithium volatility into cell pricing, most visibly in ESS formats, alongside a regional divergence that left North American prices at a premium to Europe by quarter-end as freight costs rose," said Adam Megginson, a principal price analyst at Benchmark.

While countries including the US, Turkey, and Mexico have been ramping up tariffs on electric vehicles (EVs) made in China, EV imports from China into the UK have continued to face a standard 10% import duty. The UK’s largest trading partner, the EU, introduced tariffs on China-made BEVs in 2024. In 2023, the last year when EVs made in China did not face additional tariffs from the EU, they accounted for 17% of total EV sales within the bloc. They broadly maintained this share until 2026, when over the first eight months of the year that share increased to 22% as Chinese automakers push into overseas markets against the backdrop of their subdued domestic environment. In comparison, China-made EVs accounted for 19% of EV sales in the UK in 2023, with that figure rising to 33% so far in 2026.

Prices of all chemistries of cathode active material fell throughout Q3 2026, driven by across the board declines in raw material prices. “Q3 extended the broad cathode softening that closed out Q2,” said Frederick Bloomfield, a senior price analyst at Benchmark. “This quarter has been almost entirely characterised by cobalt bearishness weighing on feedstock prices and thus lowering the price of cobalt-containing CAM. Moreover, the growing discrepancy between what LFP producers are reporting about costs versus what LFP cathode prices actually did piqued curiosity”