Chinese battery maker to build $ 2.4bn plant in Germany

Chinese battery maker to build $ 2.4bn plant in Germany

November 18, 2020 0 By autotimesnews

Svolt will begin production of battery cells at the end of 2023 in Germany.

Chinese company SVolt Energy Technology plans to invest around € 2 billion ($ 2.4 billion) in Germany to build its first plant in Europe as the battery manufacturer seeks to capitalize on the growing demand for electric vehicles in the region.

The plant will have the capacity to produce up to 24 gigawatt-hours of batteries to power 300,000 to 500,000 electric vehicles a year, the company said in a statement Tuesday. Production is scheduled to begin in late 2023 at a site near Saarlouis, on the German-French border.

European manufacturers, including Swedish startup NorthVolt and a joint venture between PSA Group and energy giant Total, have also begun building battery factories to challenge the dominance of Asian manufacturers.

NorthVolt has formed a joint venture with the Volkswagen Group to build a battery manufacturing plant near the German company’s headquarters in Wolfsburg. VW CEO Herbert Diess said earlier this month that German auto parts suppliers are hesitant to invest in battery technology.

SVolt, created by Great Wall Motor, said the plant will employ up to 2,000 workers who will seek to take advantage of some of the world’s largest electric vehicle subsidies. SVolt is in talks with several car makers on deals for the supply of batteries, its head of sales Maxim Ganch-Kramskoy told reporters.