Chinese electric vehicle battery maker Gotion High-Tech announced on Sept. 16 that it has begun production at its first European plant in Gottingen, Germany, and expects to begin supplying local markets next month. The move represents a major overseas market milestone for the firm, which counts Volkswagen as its largest shareholder with a 24.77% stake.
Why it matters: The move has made Gotion the second Chinese battery supplier after CATL to set up an overseas production base in Europe, which could help strengthen the development of a local battery supply chain on the continent.
- European legislators recently passed new rules that would require businesses to label the carbon footprints of their batteries and use a minimum amount of recycled raw materials eight years after the law comes into effect, Reuters reported.
Details: Gotion has operationalized its first production line at the Gottingen factory and received a large number of orders from local clients, with plans to begin supplying local markets in October, Peter Willemsen, chief operating officer of Gotion Global said in a statement. The Chinese enterprise took over the plant from German auto supplier Bosch in 2021.
- Gotion will mass produce battery packs for both commercial and passenger vehicles, as well as those for energy storage in the new facility, which will have an annual capacity of 5 gigawatt hours (GWh) by mid-2024. It aims for a total capacity for batteries equivalent to 20 GWh when construction is completed, which is anticipated by 2025.
- The Chinese battery maker also announced battery development and supply partnerships with European enterprises including German chemical giant BASF and Swiss engineering company ABB on Sept. 16. The plant will serve as a regional research and development center and a logistics hub at a projected annual output value of €2 billion once it comes into full operation.
Context: The world’s ninth largest battery maker by shipments, Gotion is already facilitating the establishment of a battery plant scheduled for operation in 2025 with Volkswagen in Salzgitter, a city close to Wolfsburg where its major shareholder is headquartered.
- Gotion also plans to build a $6.3 billion factory in Morocco and is considering setting up a joint facility for making battery cells at an annual capacity of 40 GWh with Slovakian battery startup InoBat in the eastern European country. Construction of two US factories in Illinois and Michigan is also in the pipeline.
- Rival CATL initiated efforts to build its first European plant in Thuringia, Germany in 2018 and kicked off production last December. Another battery giant, BYD, is mulling local production of EV batteries in Hungary, while Great Wall Motor-backed SVolt recently announced ambitious European expansion plans.