Chinese battery maker to invest $2.4 billion to build first European factory

China’s SVolt Energy Technology Co. plans to invest about 2 billion euros ($2.4 billion) in Germany to build its first factory in Europe as the battery maker seeks to benefit from surging electric-car demand in the region.

The factory will have 24 gigawatt-hours of batteries to power between 300,000 and 500,000 electric cars annually. (Representational photo) (Bloomberg)
The factory will have 24 gigawatt-hours of batteries to power between 300,000 and 500,000 electric cars annually. (Representational photo)

The plant will have the capacity to make as much as 24 gigawatt-hours of batteries to power between 300,000 and 500,000 electric cars annually, the company spun off by Great Wall Motor Co. said Tuesday in a statement. Production is slated to start at the end of 2023 at the site near Saarlouis, along Germany’s border with France.

The project echoes a move by larger Chinese peer Contemporary Amperex Technology Ltd. to open a battery plant on the home turf of German car giants Volkswagen AG, Daimler AG and BMW AG. Domestic European manufacturers including Swedish startup NorthVolt AB and a joint venture between French automaker PSA Group and energy giant Total SA also have started building battery factories in a bid to challenge the dominance of Asian producers.

Also check these Vehicles

Find more Cars
Mg 4 Ev (HT Auto photo)
₹ 30 - 32 Lakhs* *Expected Price
View Details
Tata Sierra Ev (HT Auto photo)
₹ 25 - 30 Lakhs* *Expected Price
View Details
Tata Harrier Ev (HT Auto photo)
₹ 22 - 25 Lakhs* *Expected Price
View Details
Tata Punch Ev (HT Auto photo)
₹ 12 - 14 Lakhs* *Expected Price
View Details
Mg Comet Ev (HT Auto photo)
₹ 7.98 - 9.98 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Tata Tiago Ev (HT Auto photo)
₹ 8.49 - 11.79 Lakh* *Ex-showroom price
Add to compare
Check latest offers

(Also Read | Equinor, Hydro, Panasonic eye battery production in Norway targeting EVs

NorthVolt forged a joint venture with the world’s best-selling automaker Volkswagen to construct a battery factory near the German company’s headquarters in Wolfsburg. VW Chief Executive Officer Herbert Diess said earlier this month German car-parts suppliers have been too hesitant to invest in battery technology.

SVolt said it will employ as many as 2,000 workers at the factory, which will look to take advantage of some of the world’s largest subsidies for EVs. Combined sales of hybrid and fully electric cars topped deliveries of vehicles powered by diesel engines for the first time in September, according to industry researcher Jato Dynamics.

SVolt is in talks with several automakers about battery-supply deals, its sales chief Maxim Hantsch-Kramskoj told reporters. There would be an industrial logic for Ford Motor Co. to purchase batteries for its nearby vehicle factory, but the U.S. automaker would have “to make the first step," he said.

For the German state of Saarland, SVolt’s factory will be the largest industrial investment project since Ford opened its Saarlouis factory half a century ago, Economy Minister Anke Rehlinger said.

First Published Date: 18 Nov 2020, 19:00 PM IST
Shopping Bag Shop Now
74% OFF
Microfiber Car Cleaning Soft Brush Ideal as Mop Duster, Washing Brush with Long Handle, Dust Cleaner Car Wash Brush with Handle, Soft Brush Scratch Free, Cleaning Dashboard Curved Design - Grey
Rs. 389 Rs. 1,499
64% OFF
Antson Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable, Portable,Rechargeable Vacuum (2 in 1)
Rs. 699 Rs. 1,939
1% OFF
GOODAIR Clear Car Windshield Enhancer | Classic |12 Tablets
Rs. 295 Rs. 299
SHAYONAM Dent Removal Kit - Powerful Car Dent Repair Kit - Suction Cup Dent Puller Handle Lifter and Dent Repair Puller for Car Body Dent, Glass, Tiles and Mirror (Plastic)
Rs. 399

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
Powered by: Acko Logo
Please be noted that any information provided herein above will be received by Acko General Insurance Limited (“Acko”). By mentioning the above information, you agree to provide these details and information to Acko.
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.