The scale of this reliance is stark. In 2024, China supplied 98% of the EU’s solar panels, 88% of its lithium-ion battery imports, and 61% of inverter imports. While these affordable imports have fueled a swift green rollout, they have simultaneously hollowed out domestic manufacturing capabilities. EU Climate Action Commissioner Wopke Hoekstra recently described this situation as a dangerous, uncomfortable vulnerability, warning that delaying the shift toward domestic production will only inflate future costs.

Efforts to diversify supply chains have yielded few results. A report by the European Court of Auditors indicates that current initiatives to boost local production and secure alternative raw materials are hindered by persistent bottlenecks. Many projects intended to bolster European autonomy are struggling to gain traction, leaving the bloc exposed to supply chain disruptions. Experts warn that unless the EU pivots quickly, it risks consolidating a new form of dependency that could undermine its broader industrial and digital ambitions.