Europe has been working to build a strong local battery industry, which is essential for electric vehicles and other technologies. However, this industry faces challenges from Asian producers, particularly China, which has a more established and cost-effective manufacturing sector. In a new report titled Europe’s Electric Backbone, the Backbone Coalition, a group of industry stakeholders, warns that the next three years will be critical for Europe’s ability to compete globally. The coalition is urging European governments to provide more financial support, prioritize European-made products, and take trade actions against Chinese competitors to secure the region’s position in the battery market. The report highlights that Europe’s window of opportunity is very limited. If European countries do not act quickly, investments, skilled workers, and research centers might move to other regions such as the United States or China. The importance of batteries goes beyond electric vehicles; they are also used in energy storage, data centers, industrial applications, and defense systems. To maintain its competitive edge, Europe must ensure it retains control over key aspects of the battery supply chain, including cell production, materials, equipment, and software. To support manufacturers and attract private investment, the report suggests simplifying current subsidy mechanisms. Instead of complex and slow approval processes, it recommends offering a fixed financial incentive per kilowatt-hour (kWh) of battery cells or components produced in Europe. This approach would make it easier for companies to plan and invest. The coalition also proposes strengthening "Made in Europe" standards in public procurement, taxation policies, and subsidies. Additionally, it suggests that by 2027, certain strategic components should be required to be produced within Europe to ensure self-sufficiency. A more assertive strategy involves opening an anti-subsidy investigation into Chinese battery producers. The report suggests applying the same scrutiny used for Chinese electric vehicles to battery cells, management systems, and stationary storage systems. This does not mean Europe aims to fully replace all foreign supply chains but instead to build a robust enough local industry to reduce overreliance on external suppliers. The coalition’s recommendations align with the "Battery Booster" initiative already supported by the European Union, which aims to strengthen Europe’s battery manufacturing capacity.