Chinese electric car battery maker Svolt announced Tuesday that it will be spending up to € 2 billion on building a base in Germany to join a race of Asian companies joining the fast-growing European electric mobility market.
The company, a spin-off from the Chinese automotive giant Great Wall Motors, said it had invested the equivalent of $ 2.3 billion in building two factories in western Saarland by the end of 2023 to create 2,000 jobs.
Svolt announced last year that it was looking for a European production facility to strengthen ties with European car manufacturers.
According to Yang Hongxin, head of Svolt, the move is aimed at “the European automotive industry and the growing market for renewable energies”.
Saarland was chosen because “it is not only in the heart of Europe, but also represents a region of innovation and technology for the automotive industry,” he said.
The factories will produce batteries with a total output of 24 gigawatt hours (GWh) per year – enough for 300,000 to 500,000 electric vehicles.
Given the increasing global demand for electric cars, it is expected that Volkswagen alone will need more than 150 GWh per year by 2025.
Only a few European car manufacturers have taken the enormous financial risk of setting up their own production of lithium-ion batteries.
Rather, they prefer to outsource the battery work to specialized suppliers.
Asian manufacturers in particular have built up capacities in Europe. The Chinese market leader CATL is building a plant in Erfurt that will initially supply BMW.
Germany and France are planning an “Airbus of Batteries” against Asian competitors with planned investments of between five and six billion euros, of which four billion will come from the private sector.
fec / hmn / rl
LARGE WALL MOTOR COMPANIES
BAYERISCHE MOTOREN WERKE AG
Powering the World in the 21st Century at Energy-Daily.com
Thanks for being there;
We need your help. The SpaceDaily news network continues to grow, but revenue has never been so difficult to sustain.
With the rise of ad blockers and Facebook, our traditional revenue streams from high quality network advertising continue to decline. And unlike so many other news sites, we don’t have a paywall – with those annoying usernames and passwords.
Our reporting takes time and effort to publish 365 days a year.
If you find our news pages informative and useful, consider becoming a regular supporter or making a one-off contribution for the time being.
SpaceDaily monthly supporter
Finland’s battery plans spark environmental fears
Sotkamo, Finland (AFP), November 16, 2020
Rows of trucks carrying piles of stones through Finland’s rugged Terrafame mine, 300 km below the Arctic Circle, Europe’s largest source of nickel for electric car batteries. On the huge, 60 square kilometer site, the extracted stone is crushed, heaped in huge mounds and fed with oxygen and water through red hoses, so that the nickel and a little cobalt can gradually leach out. “Even today, more than 50 percent of our sales come from electric vehicles … read more