The short version
- Major European battery manufacturers have recently collapsed, raising concerns about the continent's ability to compete in the global energy storage market.
- New startups are focusing on nanoscale innovations such as silicon anodes and protective coatings to improve battery performance without building full cells.
- These companies aim to replicate the semiconductor industry model by controlling critical production steps rather than competing directly with Asian giants.
The European battery sector has experienced significant turbulence in recent years, marked by the high-profile failures of major players. Sweden’s Northvolt and Norway’s Morrow both filed for bankruptcy, events that have intensified fears across the continent that Europe may be missing another critical technological transition. As transportation and industrial sectors increasingly shift away from fossil fuels toward electricity, the demand for energy storage solutions is expected to grow substantially. However, the path to market dominance remains fraught with challenges, including long development cycles and intense competition, particularly from Chinese manufacturers who dominate much of the global supply chain.
In response to these macro-level setbacks, a new wave of investors and researchers is turning their attention to innovations at the nanoscale. A nanometer represents one-billionth of a meter, yet it is at this microscopic level that some of the most impactful advancements in battery technology are currently occurring. This shift toward deep tech involves substantial risk but offers the potential for breakthroughs that could reshape multiple industries. Rather than attempting to manufacture entire battery packs, which requires massive capital and faces stiff competition, these emerging firms are focusing on specific, high-value components that enhance efficiency, durability, and charging speed.
One prominent example is LeydenJar, a Dutch technology company based in Eindhoven. The firm utilizes plasma deposition techniques to create ultra-thin pure silicon foils for battery anodes. Silicon is an attractive material due to its low cost and high effectiveness, but it traditionally suffers from structural instability; it expands and contracts during charging cycles, leading to cracking and reduced lifespan. LeydenJar’s method layers the silicon atom by atom, creating a foil that resists this degradation. According to company leadership, this innovation can increase energy density by up to 50 percent while significantly improving battery life and charging rates.
The location of LeydenJar’s operations is strategic. Eindhoven is a hub for the semiconductor industry, home to ASML and other key players in computer chip manufacturing. The company’s chief executive highlights that this ecosystem provides a competitive advantage, allowing for crossover expertise between semiconductors and battery technology. Industrializing lab concepts requires collaboration with semiconductor suppliers, a process that is complex but offers robust opportunities for intellectual property protection. This approach contrasts with the environments in the United States or China, where securing such proprietary advantages may be more difficult.
Commercial-scale production for LeydenJar is scheduled to begin at the end of 2026, marking the culmination of a decade-long development process. This timeline underscores the patience and investment required for deep tech innovations to reach maturity. The company does not intend to build complete batteries but rather to supply critical components that enhance existing designs. By focusing on a niche within the broader supply chain, LeydenJar aims to establish itself as an indispensable partner in the global battery market, similar to how ASML holds a pivotal position in chip manufacturing.
Another Dutch startup, Powall, based in Delft, is pursuing a complementary strategy. The company is developing commercial-scale equipment for nanocoating the powder materials used in today’s batteries. Using atomic layer deposition, Powall applies coatings measured in nanometers to individual powder granules, which are themselves measured in micrometers. This precise process allows for adjustments that can slow down battery degradation over thousands of charge cycles. Many new battery materials offer high capacity or fast charging but lack durability; Powall’s technology provides a protective layer that enables these novel materials to become viable commercial products.
The flexibility of Powall’s system allows for precise control over coating thickness, which directly impacts performance. The process involves carrying powders and coatings via gas into a chemical reaction chamber, enabling endless adaptation for different material needs. Like LeydenJar, Powall is not attempting to assemble full batteries but is instead focusing on enhancing the raw materials that form the foundation of current energy storage solutions. Both companies maintain commercial relationships with customers in Asia, indicating that their technologies are already gaining traction in global markets.
The strategic ambition behind these startups is to fortify Europe’s position in what has become a fierce global contest for battery technology dominance. By focusing on critical steps in the production process rather than final assembly, these firms hope to secure a seat at the table in the broader industry battle. This model mirrors the semiconductor sector, where control over essential manufacturing equipment and materials grants significant leverage. As Europe seeks to navigate the risks of deep tech innovation, these nanoscale approaches offer a potential pathway to competitiveness without directly confronting the scale advantages of Asian battery giants.
The success of this strategy remains uncertain, given the inherent risks associated with long development timelines and the need for sustained investment. However, the focus on specialized components rather than whole-system manufacturing may provide a more resilient position in the global supply chain. As the transition to electric transport and industry accelerates, the ability to produce efficient, durable battery materials will be crucial. European firms like LeydenJar and Powall are betting that mastering these microscopic details will allow them to play a pivotal role in the future of energy storage.
Looking ahead, the commercial viability of these technologies will depend on their ability to scale production while maintaining quality and cost-effectiveness. The integration of semiconductor expertise into battery manufacturing represents a novel approach to an old problem. If successful, this model could redefine Europe’s role in the global battery industry, shifting from a position of vulnerability to one of specialized strength. The coming years will be critical in determining whether these deep tech innovations can deliver on their promise and help Europe recharge its industrial competitiveness.
Sources behind this briefing
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- BBC Business↗Can Europe recharge its battery industry?
