The European Union is taking bold steps to prioritize domestic production and innovation in the green technology sector through various initiatives. Notably, the EU is offering grants and incentives to companies that manufacture lithium-ion batteries locally, aiming to reduce dependency on Chinese sources. This move aligns with the EU's strategy to strengthen its clean energy supply chain and achieve its climate goals by 2050. In addition to supporting battery production, the EU is also focusing on financing net-zero technologies and hydrogen projects by domestic producers. By setting criteria to limit the sourcing of critical materials from specific countries, such as China, Malaysia, Thailand, and Vietnam, the EU aims to ensure resilience and independence in its industrial sector. While these initiatives aim to create a competitive green tech sector in Europe, challenges like increased production costs remain. However, EU leaders argue that the long-term benefits of industrial self-sufficiency outweigh the initial hurdles. Despite the EU's efforts, Northvolt, a Swedish company attempting to manufacture batteries locally, faced bankruptcy. The company misjudged market trends and underestimated the competition from Chinese manufacturers like CATL and BYD, who scaled up production significantly. This failure highlights the importance of understanding market dynamics and competition in the green technology sector.