European ambitions to reclaim dominance in the electric vehicle battery sector face stiff challenges following the recent bankruptcies of high-profile contenders Northvolt in Sweden and Morrow in Norway. With China currently dominating production, some investors and researchers believe the continent’s best path forward lies not in competing at the manufacturing scale of gigafactories, but at the microscopic level of nanotechnology.
Christian Rood, CEO of LeydenJar, a Dutch technology firm, acknowledges the perilous nature of the industry. “If you can make this work, it touches so many industries [but] it’s a risky business,” Rood said. The company, named after an 18th-century precursor to the electric cell, employs plasma deposition to create ultra-thin, crack-resistant silicon foils for battery anodes. While pure silicon is an effective and inexpensive anode material, it typically degrades and cracks during charging cycles. LeydenJar’s method reportedly increases energy density, charging speed, and battery longevity by up to 50%, solving a critical bottleneck in performance.
Commercial production at LeydenJar’s facility in Eindhoven is scheduled to begin at the end of 2026, a timeline that reflects the decade-long development period characteristic of deep tech innovations. The company’s location is strategic; Eindhoven is also home to semiconductor giant ASML and other chip industry players. Rood emphasized that the crossover between semiconductor and battery technologies provides a distinct competitive advantage, particularly regarding intellectual property and patent protection, which he argues is more difficult to secure in the US or China.
Similarly, Delft-based startup Powall is applying techniques born in the semiconductor industry to battery materials. Using atomic layer deposition, Powall applies nanometer-scale coatings to the micrometer-sized powder granules used in current batteries. CEO Roderik Colen explained that while novel battery materials often offer high capacity or fast charging, they frequently lack durability. Powall’s protective nanocoatings aim to slow degradation, enabling these advanced materials to become commercially viable products.
Neither company intends to build complete batteries, but rather aims to fortify Europe’s position within the global supply chain by providing unique, high-value components. Rood drew parallels to ASML’s role in the semiconductor battle, noting that focusing on a critical, specialized step can ensure a seat at the table despite not producing the final chip or battery. Powall already maintains commercial relationships with Asian customers.
However, experts caution that this niche strategy has limitations. Alexander Brown, a senior analyst at the Mercator Institute for China Studies (Merics) in Berlin, noted that while having an advanced, high-margin part of the supply chain in Europe is beneficial, China is aggressively working to develop local alternatives for even niche technologies. Brown warned that Europe should not rely solely on producing exquisite, high-quality products, as Chinese competitors may eventually replicate these advancements.
Beyond technological hurdles, European startups face significant financial challenges. Rood highlighted that risk appetite in Europe differs substantially from that in Asia and the US. LeydenJar has had to navigate a complex funding landscape involving government grants, debt financing, the European Investment Bank, and private equity, each with rigorous due diligence requirements. Despite these obstacles, Colen described the Netherlands as an “innovation powerhouse” and suggested that the booming demand for battery technology offers a substantial opportunity for European firms to make an impact—if investors are willing to embrace the necessary risks.
China replicating niche tech is the biggest threat. How long before they reverse-engineer these nanocoatings if the margins get too juicy?
Northvolt’s collapse is a stark reminder that scale alone isn’t enough. Maybe Europe should focus on high-value components instead?
I’m skeptical about the timeline. Deep tech always takes longer and costs more than predicted. Hope they don’t run out of cash before 2026.
Leveraging ASML’s ecosystem is genius. That proximity to semiconductor giants is their real moat against Asian competitors.