The European Union's electric vehicle battery industry is at a pivotal moment, facing a critical three-year window to secure its future, according to a report by the Backbone Coalition, a group of industry leaders and experts. Without urgent support from EU policymakers, companies may choose to move production to the United States or China, where government incentives are more robust. This shift could undermine Europe's growing push for green energy and self-sufficiency in key technologies. France has recently committed 5.2 billion euros to develop solid-state batteries, a next-generation technology that promises higher energy density and improved safety. However, the report suggests that the future of European battery production remains uncertain, with the EU potentially losing up to 10.5 billion euros in profits by 2030 if it continues to rely on battery cells imported from Asia. The Backbone Coalition argues that the battery sector is not only vital for electric vehicles but also for the electrical grid, data centers, and national defense, making the cost of inaction potentially greater than the cost of building resilience. The coalition has criticized the current system of European aid for being too slow and bureaucratic, suggesting that direct financial support per kilowatt-hour of assembled battery cells—similar to the U.S. Inflation Reduction Act—would provide clearer financial incentives for manufacturers. This approach would help ensure stable profitability and encourage private banks to offer loans, which are currently difficult to secure. Another key recommendation is investing in refining raw materials within the EU, which is essential for recycling and reducing reliance on foreign suppliers. To strengthen the European battery industry, the Backbone Coalition, alongside major automakers like Stellantis and Volkswagen, is pushing for mandatory "made in EU" requirements starting in 2027. They also call for an anti-subsidy investigation into imported battery cells, aiming to level the playing field. The coalition warns that if European production is not secured, Chinese batteries could become more expensive, giving Chinese automakers a price advantage in the European market. This could further erode the competitiveness of European carmakers and delay the transition to sustainable transportation.