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From Barrel to Battery: What Will Europe’s Clean Car Debate Decide

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From Barrel to Battery: What Will Europe’s Clean Car Debate Decide

The new energy reality: 1 kWh of battery is cheaper than a barrel of oil

The EU is fiercely debating the future of the automotive industry and how far the transition to battery electric cars will be slowed down. Last time we had this debate back in 2022, Europe was likewise in the middle of an energy crisis. But today, much has changed and the debate is completely out of touch with reality.

In 2022, the European Green Deal set the direction and demonstrated true political leadership: the future is electric. New cars sold after 2035 would no longer rely on polluting, expensive, imported fossil fuels.

At the time, Europe was suffering from the aftermath of Russia’s invasion of Ukraine. Oil prices soared to $120 per barrel, while lithium ion battery prices stood at $170 per kWh.

Today, however, the EU is on the verge of dismantling the Green Deal and specifically its poster child, the clean car targets. Meanwhile, another major geopolitical event has sent oil prices surging back towards 2022 levels. The conflict in the Middle East and the resulting spike in energy prices have once again laid bare the consequences of fossil fuel dependency. European drivers are paying the price, just as they did in previous crises. But unlike in the past, the solution is now readily available.

Since 2022, average battery prices have dropped dramatically to $105 per kWh in 2026 globally.

While oil prices repeatedly breached $105 per barrel between March and May, over the past three weeks they have experienced a sharp surge, continuously climbing well past the $105 mark.


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