This is an interesting and comprehensive article about the EV battery manufacturing outlook for Europe. 

Whilst there are many factors affecting the competitiveness of an industry  - or in fact the chance a specific industry can develop in the first place - Europe’s strong background in recycling will become more important for manufacturers as the norms for extended producer responsibility rise and as upward pressure is put on the price of raw materials, such as cobalt and lithium. Having supply chains for reverse logistics and recycling in place also enhances security of supply of rare materials, which are often produced in volatile regions. And last but not least, establishing a closed recycling loop could be a major competitive advantage for European countries in implementing a sustainable battery life cycle.

For a full overview of the state of the industry this article is an excellent reference point.