Europe's ambition to be a world player in decarbonised transportation arguably depends on sourcing lithium abroad, especially in South America.

Even the bloc's broader energy security and climate goals could depend on securing a steady supply of the key mineral, used in batteries and other clean energy supply chains.

But Europe has run into a trio of obstacles: lack of money, double-edged regulations and competition from China, analysts told AFP.

China has a major head start.

It currently produces more than three-quarters of batteries sold worldwide, refines 70 percent of raw lithium and is the world's third-largest extractor behind Australia and Chile, according to 2024 data from the United States Geological Survey.

To gain a foothold, Europe has developed a regulatory framework that emphasises environmental preservation, quality job creation and cooperation with local communities.

It has also signed bilateral agreements with about 15 countries, including Chile and Argentina, the world's fifth-largest lithium producer.

But too often it fails to deliver when it comes to investment, say experts.

"I see a lot of memoranda of understanding, but there is a lack of action," Julia Poliscanova, director of electric vehicles at the Transport and........

© International Business Times