European firms target nanotechnology to secure battery supply chain

European battery manufacturers are increasingly turning to nanotechnology as a strategic alternative to competing with Chinese firms on scale. Following the high-profile bankruptcies of Swedish firm Northvolt and Norwegian company Morrow, concerns have grown that the continent may have missed a critical technological shift. While the transition from fossil fuels to electricity suggests batteries will remain a growth sector, the long timelines required to bring new products to market and intense global competition pose significant risks. In response, a growing number of investors and researchers are focusing on innovations at the nanometre scale, where one billionth of a metre, to address specific bottlenecks in battery performance and durability.

Dutch technology firm LeydenJar is at the forefront of this approach, utilising plasma deposition to create ultra-thin pure silicon anodes. Silicon is a cost-effective material for anodes, but it tends to expand and contract during charging cycles, causing cracks that degrade battery life. LeydenJar’s technique layers silicon to create a foil that resists this cracking, which the company claims can increase battery life, charging speed, and energy density by up to 50 per cent. Christian Rood, the chief executive of LeydenJar, described the invention as a solution to a major bottleneck in battery technology. The company plans to begin commercial-scale production at the end of 2026, a milestone reached after a decade of development. Its factory is located in Eindhoven, a city known for its semiconductor industry, which Rood cites as a key competitive advantage. He noted that the crossover from semiconductor technology to batteries allows for robust intellectual property protection, a challenge he says is more difficult to navigate in the United States or China.

Another Dutch start-up, Powall, based in Delft, is developing commercial-scale equipment for nanocoating battery raw materials. Powall uses atomic layer deposition to apply coatings measured in nanometres to powder granules measured in micrometres. Roderik Colen, the company’s chief executive, explained that this process can slow down the degradation of batteries over thousands of uses. He added that while new materials often offer higher capacity or faster charging, they frequently suffer from poor durability, preventing them from becoming commercial products. Powall’s protective coatings aim to enable these novel materials by addressing their durability issues. The process involves carrying powders and coatings via gas to facilitate a chemical reaction, offering a precise and flexible method that can be adapted to achieve specific performance outcomes.

Neither LeydenJar nor Powall intends to manufacture complete batteries. Instead, both companies maintain commercial relationships with customers in Asia. Rood argues that this specialised approach can strengthen Europe’s position in the global battery market. He drew a parallel with the semiconductor industry, noting that Dutch firm ASML does not produce chips but focuses on a critical production step, thereby securing a vital role in the global supply chain. LeydenJar aims to achieve a similar status with its unique battery anodes. Alexander Brown, a senior analyst at the Mercator Institute for China Studies, acknowledged that having an advanced technological segment of the supply chain based in Europe could offer high margins. However, he cautioned that China is actively working to reduce its dependence on other regions and is developing local alternatives for niche technologies. Brown suggested that while Europe has traditional strengths in high-quality products, policymakers should not rely on this as their sole strategy.

Funding remains a challenge for these deep tech innovations. Rood stated that while sufficient financing exists in Europe, the risk appetite differs significantly from that in Asia and the United States. This requires companies to manage multiple funding sources simultaneously, including government grants, debt financing, support from the European Investment Bank, and equity investors. Each source imposes challenging conditions and requires separate due diligence. Colen described Europe, and the Netherlands in particular, as an innovation powerhouse. He noted that the battery industry is relatively young, with factories being constructed globally and a search for the right technology. This presents an opportunity for European firms to play a significant role given the massive volumes involved. The emerging consensus suggests that Europe’s competitive edge may lie not in building large-scale battery factories, but in mastering the small-scale technological changes that make a substantial difference in performance.