CATL European Battery Plant Site Is About To Be Finalized In Thuringia

- Jun 08, 2018-

CATL European battery plant site is about to be finalized in Thuringia, Germany


Introduction: CATL plans to raise 10% of its total equity in initial public offerings to raise funds for further expansion of its overseas markets. CATL, located in Ningde, a port city in southeastern China, has been considering starting production in Europe since the beginning of this year.

According to foreign media reports, informed sources revealed that China's battery giant Ningde (CATL) will soon decide to establish a battery factory in Germany as an important part of its entry into the European market.

The person familiar with the matter pointed out that CATL is considering setting up a battery factory in Thuringia, Germany. Because the siting review was conducted in private, the informed person asked not to be named. They stated that CATL is also exploring appropriate addresses in Poland and at least one other European country, and may eventually choose to build factories where it is already considered. A CATL representative declined to comment on this.

CATL plans to raise 10% of its total share capital in initial public offerings to raise funds for further expansion of its overseas markets. CATL, located in Ningde, a port city in southeastern China, has been considering starting production in Europe since the beginning of this year. At present, there is only one Nissan battery factory in Europe. The scarcity of battery factories means that this is a blue ocean market. However, European Pearl auto parts makers seem to have been reluctant to invest in the battery industry against major Asian battery suppliers Samsung SDI, LG Chemicals and Panasonic. Bosch, a world-famous parts supplier, decided not to manufacture battery cells three months ago, claiming that its manufacturing cost exceeds 20 billion euros (US$23.5 billion).

Sabine Angermann, a Daimler Group procurement executive, revealed last month that the Daimler Group is discussing supply cooperation with CATL, and CATL will become its power battery supplier. Current CATL OEM customers include the Volkswagen Group, BMW, Nissan, and Hyundai.

The hardware union stressed this week that building a battery plant in Germany can help ease the job change in the country’s auto industry. In a report on Tuesday, the ILO said that electric vehicle production may increase by 25,000 jobs by 2030, but this may lead to the disappearance of engine and transmission manufacturing, resulting in the loss of another 75,000 jobs.