Europe is betting on cutting-edge nanotechnology to strengthen its position in the rapidly expanding global battery industry, after several high-profile setbacks in its efforts to compete in large-scale battery manufacturing.
The continent has suffered major blows with Swedish battery maker Northvolt and Norwegian start-up Morrow both filing for bankruptcy, raising concerns that European companies could once again miss a major technological transition. With transport, manufacturing and other industries increasingly moving away from fossil fuels towards electrification, demand for batteries is expected to grow significantly. However, developing new battery technologies requires years of research and substantial investment, while companies face intense competition, particularly from established Chinese manufacturers.
Against this backdrop, a growing number of European researchers and investors are turning their attention to technologies operating at the nanometre scale, where extremely small changes to battery components could potentially deliver significant improvements.
One of the companies pursuing this approach is Dutch technology firm LeydenJar, based in Eindhoven. The company is developing a new type of battery anode using plasma deposition, a technology with roots in the semiconductor industry. Anodes are a crucial component of rechargeable batteries.
LeydenJar is focusing on silicon, which is relatively inexpensive and has the potential to store considerably more energy than conventional anode materials. The major problem with pure silicon, however, is that it expands and contracts during charging and discharging, eventually causing it to crack and degrade.
The company says its plasma-deposition process can create an extremely thin layer of pure silicon foil that is capable of withstanding this repeated expansion and contraction. According to LeydenJar, the technology could increase battery energy density by as much as 50%, while also improving charging speed and battery lifespan.
Chief executive Christian Rood said the technology could address one of the major limitations currently holding back improvements in batteries. The company, which takes its name from an early form of electric cell developed in the 18th century, plans to begin commercial-scale production by the end of 2026. However, reaching that stage has taken around a decade, highlighting the long development cycles and high financial risks associated with so-called deep-tech businesses.
LeydenJar’s location in Eindhoven is also significant. The Dutch city is a major centre for semiconductor technology and is home to ASML, one of the world’s most important suppliers of chip-making equipment. Rood said the connection between the semiconductor and battery industries gives the company access to specialised expertise, suppliers and technology needed to move an innovation from laboratory testing to industrial production.
Another Dutch start-up, Powall, based in Delft, is also using semiconductor-derived technology to tackle problems in batteries. The company is developing equipment capable of applying extremely thin protective coatings to the powdered materials used to manufacture battery components.
Powall uses atomic layer deposition, a process that enables coatings measured in nanometres to be applied to powder particles that are themselves only micrometres in size. Chief executive Roderik Colen said such coatings can slow battery degradation and improve the durability of materials that otherwise might not be commercially viable.
According to Colen, many emerging battery materials offer advantages such as greater capacity or faster charging but often suffer from poor durability. Nanocoatings can provide a protective layer that helps overcome those weaknesses, potentially allowing promising new materials to reach commercial markets.
Neither LeydenJar nor Powall is attempting to manufacture complete batteries. Instead, the companies are targeting specific and technologically demanding parts of the battery supply chain. Both have also developed commercial relationships with customers in Asia.
LeydenJar hopes this specialised approach could give Europe a role similar to the one it holds in the semiconductor industry. Rood compared the company’s ambition with ASML, which does not manufacture chips but controls a crucial stage of the chip-production process. By developing a highly specialised battery component, he said, Europe could retain an important position in a global industry even without dominating battery manufacturing as a whole.
Alexander Brown, a senior analyst at the Berlin-based Mercator Institute for China Studies, said having an advanced section of the battery supply chain located in Europe could provide significant economic benefits, particularly if European companies develop technologies capable of commanding high margins.
However, he warned that China is also investing heavily in developing domestic alternatives to foreign technologies. While Europe has traditionally been strong in producing highly specialised and sophisticated technologies, relying solely on this advantage could leave the continent vulnerable as competitors develop their own capabilities.
Financing remains another major obstacle for European deep-tech companies. Rood said funding exists in Europe but investors and financial institutions tend to have a different attitude towards risk compared with those in the United States and Asia. Companies therefore often have to combine government grants, debt, European Investment Bank support and private investment to finance their growth.
Despite the challenges, Powall’s Colen believes Europe and particularly the Netherlands have the research and innovation capabilities needed to make a meaningful contribution to the battery industry. With battery factories being built around the world and manufacturers searching for technologies that can improve performance, he said specialised European companies have an opportunity to influence an industry with enormous potential.
For Europe, the next chapter of the battery race may therefore not necessarily depend on building the world’s biggest gigafactories. Instead, its competitive advantage could emerge from mastering the tiny technological innovations that make batteries last longer, charge faster and store more energy. In an industry where microscopic changes can have enormous commercial consequences, Europe’s strategy may ultimately be summed up by a simple principle: small changes can make big differences.
