China’s CATL: to produce EV batteries in Europe
– Influenced by “exclusion from the US” –
– CATL’s new battery can travel 400km with just 10 minutes of charging –
We will provide you with a summary of articles published in Nikkei Business.
China Ningde Era New Energy Science and Technology: (CATL)
CATL will start producing new batteries in Europe.
One of the weaknesses of EVs is that they take a long time to charge.
CATL has developed a new battery that can travel 400km with just 10 minutes of charging.
CATL Principal Engineer: Pengfei Gao
In September of this year, he answered an interview with Nikkei Business at the Munich International Auto Show.
CATL plans to quickly penetrate Europe and expand its market share.
CATL’s achievements:
Consolidated financial results for the period January to June 2023:
Net profit amounted to 20.7 billion yuan (420 billion yen), 2.5 times that of the same period last year.
CATL’s new battery development:
CATL has developed a new battery and announced its “production plans in Europe.”
Munich International Auto Show:
German Chancellor Scholz visited CATL’s booth.
Germany’s dependence on China is increasing.
Relationship between Germany and CATL:
CATL’s presence is especially important for German industry.
1. Volkswagen (VW),
2. Mercedes-Benz,
3. BMW
All German manufacturers have adopted CATL batteries.
Existence of CATL:
CATL is currently planning to produce a new type of battery.
CATL has already started operating a battery factory in Germany in response to customer requests.
China BYD also advances:
China’s BYD has the second largest share in the world for automotive batteries after CATL.
BYD is strengthening sales in Europe and considering EV production.
Economic security perspective:
Europe wants to avoid depending on Chinese companies as much as possible.
However, the local battery industry in Europe is not growing.
Expectations for Northvolt:
A Swedish battery startup funded by VW and financed by the European Investment Bank.
Expectations are high for Northvolt, but the start of mass production has been delayed.
Ford and CATL’s new factories:
New LFP battery factory:
At the end of September, Ford announced that it was “planning to establish a new facility with CATL in the midwestern state of Michigan.”
However, construction of the new factory was temporarily halted.
US Inflation Control Act (IRA):
In 2022, the United States enacted the Inflation Control Act (IRA).
EV buyers can receive a tax credit.
Vehicles eligible for tax deduction:
However, the condition is that “a certain percentage of EV minerals be produced in the United States or FTA countries.”
From the perspective of economic security, the company says it will “eliminate Chinese influence from the EV supply chain.”
US Republican lawmakers criticize:
The United States “plans to receive technical assistance from CATL for LFP battery production.”
That was “criticized by Republican politicians and others.”
Ford temporarily discontinued it due to political considerations.
CATL’s European shift:
If it becomes difficult to expand into the United States, CATL’s shift to Europe will accelerate.
The European market is attractive not only for EVs but also for battery sales.
CATL’s new battery:
The company is considering “immediately producing it in Europe.”
“Europe and China’s interdependence” cannot be easily dismissed.
Economic security risks will continue to exist.
https://news.yahoo.co.jp/articles/ee82411608555f76ee3d88d0ec12bdb0997bce28?page=2