Driven by the rapid shift toward automotive electronics and electrification, Europe moved earlier than the United States to localize lithium battery production. Yet the region’s ambitions have been sharply scaled back. Plans unveiled in 2023 projected battery manufacturing capacity of roughly 2,000 gigawatt-hours by 2030, but current estimates have been revised down to about 1,200 gigawatt-hours, effectively cutting the original blueprint nearly in half.

Heat sink manufacturers continue to benefit from the surge in AI-driven server growth, with Asia Vital Components (AVC), Auras, and Jentech all posting record-high revenues in March 2026. Liquid cooling solutions are the main driver behind this momentum. Industry players note that liquid cooling units command average prices several times higher than air-cooling modules. As 2026 is set to be the inaugural year for widespread liquid cooling adoption, its share will keep rising, ensuring strong growth momentum throughout 2026.

After Samsung Electronics moved to secure long-term memory supply agreements with major technology companies, rival SK Hynix is now pursuing similar deals with leading artificial intelligence firms, including Microsoft and Google.