China's CATL to build $7.6 bln Hungary battery plant to supply Mercedes, BMW

[beijingwalker]

China's CATL to build $7.6 bln Hungary battery plant to supply Mercedes, BMW​

Reuters
August 12, 2022

SHANGHAI, Aug 12 (Reuters) - China's CATL (300750.SZ) said on Friday it would build a 7.3 billion euro ($7.6 billion) battery plant in Hungary, Europe's largest so far, as the world's biggest electric vehicle battery maker gears up to meet growing demand from global automakers.

CATL said that construction of the 100 GWh (gigawatt hours) plant in the eastern Hungarian city of Debrecen, its biggest overseas investment, would start this year after receiving approvals, and should last no more than 64 months.

Once built, it is set to be Europe's largest battery cell plant and CATL's second in the region, making battery cells and modules for carmakers including Mercedes-Benz (MBGn.DE), BMW (BMWG.DE), Stellantis (STLA.MI) and Volkswagen (VOWG_p.DE).

The expansion comes as European automakers accelerate a transition to electric vehicles in their home markets, prompting surging demand for batteries from local suppliers and causing a run on supply deals to avoid production bottlenecks.

Volkswagen, Mercedes-Benz and Tesla (TSLA.O) have all announced or started to implement major battery expansion plans in Europe to secure access to vital cells and raw materials and support their electrification strategies.

CATL's investment will mark "a giant leap in CATL's global expansion", the company's founder and chairman Zeng Yuqun said in a statement.

The Chinese company is also pressing ahead with plans for battery production in North America by 2026 for clients including Ford Motor (F.N), Reuters reported earlier, despite tensions between Beijing and Washington.

The investment is also key for Hungary, which is becoming a major hub for electric vehicles and batteries in Europe.

Debrecen is home to a plant being built by BMW, while Volkswagen's Audi brand has a factory in western Hungary's Gyor and Mercedes-Benz operates one in Kecskemet, in the central part of the country.

BMW declined to comment but said it plans to release some battery related information in early September. VW and Stellantis did not immediately respond to requests for comment.

Mercedes-Benz said in a separate statement it would be the first partner to receive battery cells from CATL's Hungarian plant, and that its order marked the highest initial order volume for the site.

"This new state-of-the art European CATL plant in Hungary is another milestone for the scale-up of our EV production together with our key partners," Mercedes-Benz management board member Markus Schaefer said.

CATL previously said it would start supplying cylindrical cells to BMW from 2025 for its new series of electric vehicles

The Chinese company also said it is also examining the possibility of joining forces with local partners to establish facilities for battery materials in Europe.

As of end of 2021, CATL had an annual battery production capacity of 170.39 GWh, with 140 GWh capacity under construction. The company said previously it aims to install a total of 670 GWh annual capacity by 2025.

($1 = 0.9708 euros)

China's CATL to build $7.6 bln Hungary battery plant to supply Mercedes, BMW

China's CATL said on Friday it would build a 7.3 billion euro ($7.6 billion) battery plant in Hungary, Europe's largest so far, as the world's biggest electric vehicle battery maker gears up to meet growing demand from global automakers.

www.reuters.com

 

[Viet]

German carmakers should not rely too much on a single provider. In case of tensions chinese will invent excuses to blockage and not deliver the battery cells.

 

[beijingwalker]

Mercedes Benz in agreement with China’s CATL for EV battery cells​

AUGUST 13, 2022

Mercedes Benz is in agreement with China’s Contemporary Amperex Technology Co., Limited (CATL) for battery cells. The Chinese battery maker will supply battery cells for next-generation Mercedes Benz models. The automaker marks its next milestone by reaching more than 200-gigawatt hours in battery production capacity by the end of the decade. It will be through the eight global production sites.

Mercedes0Benz management board member Markus Schaefer said, “With CATL we have a technology-leader as our partner to provide us – as the first and biggest customer of the new plant’s initial capacity – with top-notch CO2 neutral battery cells for our next generation EVs in Europe.”


CATL will invest €7.34B to build the 100 GWh battery plant in Debrecen—its second battery plant in Europe following its German plant. Subject to the shareholder meeting approval, construction of the first production facilities will start within this year. The project will supply both cells and modules to European automakers.

To build a sustainable and circular battery value chain, CATL is also examining the possibility of joining forces with local partners to establish facilities for battery materials in Europe. The new factory in Hungary expands a partnership between Mercedes-Benz and CATL which was first announced in August 2020 and marks the next milestone in a local-for-local purchasing strategy.

Battery cells​

The plant will provide battery cells for the next-generation Mercedes-Benz models. CO2-neutral battery cell production for the latest Mercedes-Benz models was audited and certified by third-party companies DEKRA and SGS. In line with this strategy, the new CATL plant in Hungary will also produce battery cells for Mercedes-Benz CO2 neutrally.

CATL chairman and founder, Dr. Robin Zeng said, “There is no doubt that our plant in Debrecen will enable us to further sharpen our competitive edge, better respond to our customers in Europe, and accelerate the transition to e-mobility in Europe. The green-field project in Hungary will be a giant leap in CATL’s global expansion.” Mercedes-Benz relies on a modular, highly standardized battery kit that allows the integration of battery cells and modules from different development partners through uniformly designed components and interfaces. CATL will provide these battery cells for EV production at the European production sites of Mercedes-Benz in Germany and Hungary.

CATL is also a battery provider for Tesla. The Chinese battery maker continues to expand globally. It is one of the major global EV battery makers which supplied batteries to top EV makers in the world.

Mercedes Benz in agreement with China's CATL for EV battery cells - TechStory

Mercedes Benz is in agreement with China's Contemporary Amperex Technology Co., Limited (CATL) for battery cells.

techstory.in