European nations and Switzerland have pledged approximately $235 billion toward developing their electric vehicle industry, according to research data released Monday by New Automotive.
The bulk of these investments – roughly $72 billion – has targeted battery supply chain development as European countries work to break China’s stronghold on battery manufacturing.
According to the International Energy Agency, China produced more than 80% of all batteries manufactured in 2025, including those used beyond the electric vehicle industry.
“Europe now produces batteries for roughly one in three EVs sold domestically, and announced capacity could meet future demand if fully utilised,” New Automotive reported.
An additional $72 billion has gone toward electric vehicle manufacturing, primarily through converting traditional automotive facilities and building select new electric-only production plants, according to the research organization that aims to accelerate the transition to electric vehicles.
Charging infrastructure development has received between $28 billion and $55 billion in public funding, resulting in more than 1 million public charging stations across Europe. Manufacturing of this charging equipment has attracted over $4.2 billion in additional investment.
“These investments support more than 150,000 jobs, with a further 300,000 jobs expected if all announced projects are fully realised,” Chris Heron, secretary general of campaign group E-Mobility Europe, stated regarding the findings.
New Automotive’s analysis revealed significant differences between countries, with Germany – a major automotive producer – representing nearly 25% of the region’s total investment.
“The country anchors both domestic production and wider European value chains, with leading OEMs transitioning at scale alongside major international battery manufacturers,” the research group noted.
In December, the European Commission announced plans to eliminate the European Union’s ban on new combustion-engine vehicles scheduled for 2035, following pressure from the automotive industry. This represents the bloc’s most significant step back from environmental policies in recent years.
Heron noted that Germany, Italy and Central and Eastern European nations have formally challenged the EU’s 2035 vehicle framework, while more than half of tracked investments are located in these areas.
“France and Spain stand out as other major beneficiaries (of the investments),” he stated.
