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October 26, 2026

europe’s battery industry faces challenges and opportunities

Europe’s battery industry has faced setbacks, including the high-profile bankruptcies of Sweden’s Northvolt and Norway’s Morrow, but emerging nanotechnology innovations could change the landscape. With growing demand for batteries due to the shift from fossil fuels to electricity, European tech firms like LeydenJar and Powall aim to revolutionise battery efficiency and longevity through nanotechnology advancements developed from semiconductor techniques.

Nanotechnology’s Potential in Batteries

Navigating the competitive global battery market, particularly against formidable Chinese manufacturers, is challenging. However, groundbreaking work at a nanometre scale—a billionth of a metre—is garnering attention. LeydenJar, a Dutch tech company, is pushing boundaries by improving battery anodes using a technique called plasma deposition to create a durable silicon foil that significantly enhances performance, potentially increasing battery life, charge speed, and energy density by up to 50%.

Christian Rood, CEO of LeydenJar, notes the significant risks and the possibility of impacting numerous industries with this innovation, stating, “Where normally a pure silicon anode would fall apart, [this] remains stable, so it was a very wonderful invention.” LeydenJar is set to commence commercial-scale production by the end of 2026, after a decade of development.

Shift from Semiconductor Techniques

The location of LeydenJar’s facility in Eindhoven, a hub for the semiconductor industry, is strategic. Rood highlights the crossover between semiconductor and battery technologies as a distinct advantage, enabling innovation in battery components through precision technologies pioneered in semiconductor wafer production. This environment fosters opportunities for patenting and securing intellectual property.

Innovative Start-Ups

Elsewhere in the Netherlands, Powall in Delft is applying semiconductor techniques to the battery field by developing equipment for nanocoating battery raw materials using atomic layer deposition. This approach can improve battery durability and performance, as explained by Powall’s CEO, Roderik Colen, who says, “Your battery works less well than before after using it thousands of times – that degrading or aging can be slowed down when you’re using a nanocoating.” Powall’s process offers accuracy in coating thickness, enhancing battery reliability.

Strategic European Positioning

Both LeydenJar and Powall are strengthening their market positions by forming collaborations in Asia and contributing unique technologies to the global battery supply chain. Rood emphasises the importance of carving out a niche in the supply chain, similar to ASML’s role in the semiconductor industry. In the broader European context, analyst Alexander Brown from Merics points out the strategic advantage of hosting advanced parts of the battery supply chain within Europe, despite China’s aspirations to reduce reliance on external technologies.

The Road Ahead

The European battery sector still contends with challenges beyond technology, including funding hurdles. Rood acknowledges the comparative difficulty in securing European financing, given differing attitudes towards risk. Leveraging multiple funding sources, including government grants and debt financing, can be demanding. Nevertheless, the potential for European innovations, coupled with the continent’s strength as an “innovation powerhouse,” holds promise for the future, as noted by Powall’s Colen.

In conclusion, while Europe may not yet be leading the construction of vast battery gigafactories, its contributions to advanced battery technologies through nanotechnology could be the catalyst for significant advancements in the global market. As Colen aptly states, “small changes make big differences.”

Reporting based on coverage first published by bbc.co.uk.