Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Suppliers
September 23, 2022 04:30 AM

CATL considers third battery plant in Europe

Chinese battery maker CATL is mulling a third plant in Europe but faces energy headwinds.

Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    CATL-Germany
    Bloomberg

    CATL will start production at its first plant in Erfurt, Germany, later this year.

    The world’s biggest maker of electric-vehicle batteries, China’s Contemporary Amperex Technology Co. Ltd., is considering a third factory in Europe, the company’s president in the region, Matthias Zentgraf, said.

    “We are thinking about this, but currently there is no clear decision or activity,” Zentgraf told Bloomberg News in an interview, saying internal discussions are already underway.

    The company last month announced plans to build a second European plant in Hungary, investing 7.3 billion euros ($7.2 billion) in partnership with Mercedes-Benz.

    The facility has a planned output of 100 gigawatt hours and will also supply Volkswagen Group, BMW and Stellantis.

    CATL expects it to be ready within five years.

    “We will not build a third plant if there is no prospect for the demand volume,” Zentgraf said in a video call from the IAA Transportation conference in Hanover, Germany.

    BLOOMBERG

    CATL has maintained a lead over rivals, including the world’s second-biggest cell producer LG Energy Solution.

    The company rebounded from its sharpest-ever drop in quarterly earnings at the start of 2022, with first-half net income rising 82 percent from a year earlier and revenue jumping 156 percent.

    CATL has established several production bases in China and subsidiaries in the U.S., Japan and Europe. It is spending 27 billion yuan ($3.8 billion) on two battery projects in China’s Shandong and Fujian provinces.

    Zentgraf declined to comment on whether CATL would supply batteries to Tesla’s new factory in Berlin.

    The battery maker has also been looking at sites in Mexico and the U.S. to supply Tesla, Ford and others, though that process has been delayed in part due to political tensions between China and the US, Bloomberg reported in August.

    BLOOMBERG
    European energy crisis

    CATL is due to start producing batteries at its first European plant, in the central German city of Erfurt, later this year. One challenge is the continent’s energy crisis and rising gas prices following Russia’s invasion of Ukraine. More than half of Germany’s gas imports came from Russia before the war.

    “We are affected with the shortage of natural gas, which is very important for the cell production process because we need a lot of energy,” Zentgraf said. Gas accounts for about half of the German plant’s energy needs.

    “We are working on substitutions for this intensively,” said Zentgraf, who joined CATL in 2015. “We already have a very, very promising idea to replace natural gas to buy renewables.”

    Contingency plans will enable the plant to stay operational through winter if gas supplies fall short or prices are too high, he said.

    Zentgraf called for the EU to offer more flexible state aid to help localize and expand the EV-battery supply chain and complement billions of dollars of investment from battery makers.

    “Concentrate that subsidy money into building up the supply chain for battery businesses overall,” he said.

    BLOOMBERG
    Related Article
    CATL to build $7.6B Hungary battery plant to supply Mercedes, BMW
    CATL will supply BMW with cylindrical battery cells from 2025
    CATL's 1,000-km battery picked by 2 Chinese EV startups
    FOCUS ON ELECTRIFICATION NEWSLETTER: A monthly wrap-up of the latest electric vehicle news, including interviews and global EV sales data, delivered to your inbox.
    RECOMMENDED FOR YOU
    Autoliv's price increases help Q4 core earnings top expectations
    Recommended for You
    Autoliv logo
    Autoliv's price increases help Q4 core earnings top expectations
    STMicro sign
    STMicro expects growth on strong auto demand
    CATL factory, Erfurt, Germany
    CATL's German plant targets six battery cell production lines by the end of 2023
    Capgemini Invent Head on automotive takeaways from CES 2023
    Sponsored Content: Capgemini Invent Head on automotive takeaways from CES 2023
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us