Europe has been struggling in the battery industry in recent years, with high-profile failures like the bankruptcies of Sweden’s Northvolt and Norway’s Morrow raising concerns about the continent’s ability to keep up with rapid technological changes. As industries and transportation systems shift from fossil fuels to electric power, batteries are expected to become a major growth sector. However, the long time it takes to develop new battery technologies and the intense global competition—especially from China—pose significant challenges for European companies. To address these issues, some experts are looking to an almost unimaginably small scale: nanotechnology. This field involves working at the level of a single nanometre, which is one-billionth of a metre, and has led to groundbreaking advancements in materials science. Christian Rood, CEO of the Dutch tech firm LeydenJar, says that while the technology is promising, it remains a high-risk business. LeydenJar uses plasma deposition to create a lighter, more efficient anode—a key part of a battery. Silicon is a good, inexpensive material for anodes, but it tends to crack during use. LeydenJar's process produces an ultra-thin, pure silicon foil that resists cracking, potentially increasing battery life, charging speed, and energy density by up to 50%, according to the company. Commercial-scale production of LeydenJar's anode technology is expected to begin in late 2026 after a decade of development. The company's location in Eindhoven, a hub for semiconductor companies like ASML, gives it a strategic advantage. Rood points out that the crossover from semiconductor to battery technology is a key differentiator, helping the company secure intellectual property and patents, which can be more difficult to obtain in the US or China. Across the Netherlands and Europe, several small Deep Tech startups are exploring nanotechnology in the battery market. One such company is Powall, based in Delft, which is developing commercial-scale equipment for nanocoating battery raw materials. Using atomic layer deposition, a technique originally developed for the semiconductor industry, Powall applies nanometre-thick coatings to micrometre-sized powder granules. Roderik Colen, CEO of Powall, explains that these coatings can improve battery performance by slowing degradation and enabling new materials with higher capacity or faster charging. However, these materials often face durability issues, which Powall addresses with protective coatings. Neither LeydenJar nor Powall is aiming to build entire batteries, but both have commercial relationships with Asian customers. Rood of LeydenJar draws a comparison to the semiconductor industry, where companies like ASML focus on critical steps in chip production rather than manufacturing chips themselves. He aims for LeydenJar to take a similar strategic position in the battery supply chain with its unique anode technology. Alexander Brown, a senior analyst at the Berlin-based think tank Merics, notes that having advanced technological components based in Europe can be beneficial, offering high margins and access to global markets. However, he warns that China is actively developing local alternatives, including niche technologies, and may eventually replace companies like ASML. Europe's traditional strength in high-quality products is important, but should not be the only strategy for policymakers. Beyond technological challenges, funding remains a hurdle in this specialized field. While LeydenJar has reached commercial scale, Rood notes that raising funds in Europe can be difficult due to differing risk attitudes compared to Asia and the US. He highlights the need for a mix of government grants, debt financing, support from the European Investment Bank, and investors willing to take equity stakes. These funding sources often come with strict conditions and require extensive due diligence. Colen of Powall emphasizes that Europe, particularly the Netherlands, is an innovation powerhouse, and battery technology presents an opportunity for the continent to make an impact if there is sufficient risk appetite. He notes that the battery industry is still young, with many factories being built in search of the right technology, offering significant potential for companies that can provide innovative solutions. As Colen puts it, "small changes make big differences."