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China's CATL Aims to Build a EV Battery Plant in Germany 3 Times Bigger Than Tesla's Gigafactory

Discussion in 'China & Far East' started by long_, Feb 14, 2019.

  1. long_

    long_ SENIOR MEMBER

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    China's CATL Aims to Build a EV Battery Plant in Germany 3 Times Bigger Than Tesla's Gigafactory

    【Summary】CATL, the world’s largest maker of battery cells for electric vehicles, has already committed to building a factory in Germany, but now the battery maker plans to increase the size of its factory in Erfurt to meet rising demand from Germany’s auto industry.

    FutureCar Staff Feb 06, 2019 6:26 PM PT
    upload_2019-2-14_15-58-11.png
    [​IMG]
    CATL's headquarters and manufacturing complex in Ningde, Fujian Province, China.​


    As German automakers shift towards building more electric cars, they face a daunting problem, sourcing a steady supply of EV battery cells. At the moment, Germany does not have a factory, or the raw materials, to meet the projected high demand for battery cells. The shortage is forcing German automakers to rely heavily on Asia and South Korean suppliers, including China's Contemporary Amperex Technology Ltd. (CATL).

    CATL is the world's largest maker of battery cells for electric vehicles, has already committed to building a factory in Germany, but now the battery maker plans to increase the size of its factory in Erfurt to meet rising demand from Germany's auto industry.

    According to Handelsblatt Today, CATL is looking to increase annual capacity far beyond its original target, said Matthias Zentgraf, CATL's head of Europe, said at an automotive conference in Bochum.

    "We want to build 14 gigawatt hours in a first step and now estimate that we could be in the three-digit gigawatt area from 2026 at the latest." said Zentgraf.

    That would make the German battery factory even bigger than Tesla's Gigafactory, which currently makes battery cells with a total capacity of 20 gigawatt hours. Tesla's Nevada battery factory, which is jointly operated with Panasonic, is expected to eventually increase annual output to 35 GWh.

    CATL is eyeing European expansion because it expects huge growth in the European electric vehicle market in response to the EU's strict CO2 requirements and the banning diesel engine vehicles from some cities.

    "A lot happened last year. The new CO2 targets will lead to a faster rise in demand than we had thought," Zentgraf told Handelsblatt.

    Zentgraf said the fact that Germany's first battery-cell factory was being built by a Chinese company was simply the result of a German business sector "that didn't dare to do it."

    Major OEM supplier Bosch, the world's largest automotive parts supplier, planned to build an EV battery factory in Germany, but abandoned it plans citing high investment costs.

    Fleet-average CO2 emissions from new cars are to be cut by 37.5 percent by 2030 compared to levels in 2021, a limit that looks unattainable without battery-powered vehicles making up a large percentage of vehicles on the road.

    As a result, VW, BMW and Daimler plan a major rollout of new electric models. However, this effort requires access to a reliable supply of battery cells.

    German automakers have already committed billions of euros to purchase battery cells from CATL.

    BMW plans to source €4 billion ($4.6 billion) of battery cells from CATL over the next few years. While Volkswagen awarded contracts last year for EV batteries worth €48 billion (US$54 billion) from CATL, as well as South Korean manufacturers LG Chem and Samsung SDI.

    CATL is already looking out for further possible locations in Europe. The company is exploring whether it can expand upon its 70-hectare site in Erfurt.

    "But if that shouldn't be enough we're taking a look around right now," said Zentgraf. In Erfurt, CATL plans to break ground on the project this spring. Battery production is scheduled to begin in 2021.


    read more:
    CATL to provide EV batteries to Honda
    Published date: 14 February 2019​

    Chinese electric vehicle (EV) battery producer CATL will partner with Japanese automaker Honda to develop EV lithium-ion batteries.

    CATL will provide 56GWh of batteries to equip Honda's all-electric vehicles and plug-in hybrid vehicles in a long-term contract until 2027. CATL is planning to build a production base in Japan's Tochigi prefecture in the first half of 2019 to assist Honda's research and development.

    CATL has set up branches in the US, Japan, Germany and France. It produced 11.84GWh of lithium-ion power batteries in 2017, accounting for 17pc of global output that year.

    Honda has separate battery providers in different countries. In the US it has partnered with automaker General Motors on advanced battery cells and module development to increase scale and manufacturing efficiencies and accelerate plans to supply all-electric vehicles.

    Japan is a global leader in the adoption of hybrids and EVs with 30pc of the country's vehicles having some degree of electric substitution for traditional internal combustion engines. This compares with less than 4pc globally. It also produces around 40pc of the world's lithium-ion batteries.
     
    Last edited: Feb 14, 2019
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  2. TaiShang

    TaiShang ELITE MEMBER

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    These are key agreements to ensure profitability in the long term.
     
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  3. Place Of Space

    Place Of Space SENIOR MEMBER

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    Why build the plant in Gremany?
     
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  4. TaiShang

    TaiShang ELITE MEMBER

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    I think for their German customers. It makes sense to be close to the source of demand. Germany is a major auto producer.
     
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  5. cirr

    cirr ELITE MEMBER

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    :D

    《Purchasing Agreement between Robert Bosch GmbH Automotive Aftermarket Division and Hefei Guoxuan High-Tech Power Energy Co.,Ltd.》
     
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  6. Bussard Ramjet

    Bussard Ramjet SENIOR MEMBER

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    What is the progress on the technology front?

    CATL earlier was having troubles with its batteries, and had low energy densities. Did its energy densities increase upto the level of Panasonic?
     
  7. GS Zhou

    GS Zhou FULL MEMBER

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    great news to hear.

    Robert Bosch used to plan to build electric vehicles battery in house. Later it decides to quit because battery proves to be a big challenge to Bosch. After one year efforts on supplier seeking, they eventually lock Chinese battery companies as their suppliers.
     
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  8. qwerrty

    qwerrty SENIOR MEMBER

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    news from 2018..

    NCM 811 has higher energy density than current battery cells available on the market

     
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  9. chengdusudise

    chengdusudise FULL MEMBER

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    good news.hope we can defeat koreans and japanese in this domain
     
    Last edited: Feb 14, 2019
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  10. oprih

    oprih SENIOR MEMBER

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    Good, this also means that german auto makers will choose batteries from Chinese company CATL for their cars.