A Chinese battery producer SVOLT has announced a major European expansion to help fuel the EV industry on the continent.
Due to its aggressive regulation of ICE vehicles, one of the leading regions for EV adoption is Europe, which currently plans to phase out gas-powered vehicle sales by 2035. But to achieve its monumental goal, its domestic automotive industry has been kicked into high gear, and one resource is needed above all the rest, batteries. To meet this growing demand, Chinese battery maker SVOLT has announced it will be constructing at least five new battery plants on the continent and is in talks with automakers to begin supplying as soon as possible.
As initially reported by Bloomberg, SVOLT plans to place five battery production facilities on the continent, totaling a production capacity of 50 GWh. This is on top of two other previously announced facilities in Brandenburg, Germany (12GWh) and Saarland, Germany (capacity not disclosed). Though it should be noted that its second German facility has been put on construction hold following protests from environmental groups.
SVOLT Europe CEO Kai-Uwe Wollenhaupt notes that the battery supplier is currently in talks with three European car makers regarding production deals, with each of the agreements expected to finalize by the end of the year. However, the specific brands were not specified.
As part of this massive expansion, SVOLT, a subsidiary of Chinese automaker Great Wall Motors, plans an IPO on the Chinese stock market and has filed with the Chinese government to do so. An official IPO date has not yet been announced.
SVOLT is part of a broader trend in Europe’s EV battery market, with Reuters noting that as much as 44% of planned battery production capacity will be constructed by Asian businesses, primarily coming from China. CATL has the most planned production capacity of these projects, though it will be challenged by new European rivals, including Volkswagen’s PowerCo. and Stellantis’ Automotive Cells Company.
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