By Michael Elkins
Bloomberg reported Thursday that Chinese battery maker SVolt Energy Technology Co. is set to expand its footprint in Europe to as many as five factories.
Asian companies dominate battery-making in Europe. Data shows some 44% of planned battery capacity in Europe by 2030 is expected from Asian companies, with Chinese battery giant CATL on top of the list.
SVolt already has two locations in Germany with one facility set to start supplying Stellantis (NYSE:STLA) in 2025. The company targets a production capacity of at least 50 gigawatt-hours in Europe by the end of the decade, according to SVolt Europe head Kai-Uwe Wollenhaupt. That’s enough to power as many as 1 million EVs.
“The battery industry in Europe is really taking off,” Wollenhaupt said in an interview. “We could develop our sites even faster if we had more resources like land and skilled workers available.”
SVolt is in talks with several European car manufacturers about battery cell supply agreements, with three deals expected to wrap up by the middle of the year.
The company is currently building a 12-gigawatt plant in Thuringia, after postponing the start of a €2 billion ($2.2 billion) factory in Saarland until 2027 following local protests. The company remains committed to the plans in Saarland, Wollenhaupt said. SVolt’s strategy targets smaller production sites that are less of a drain on local resources.
“We are not fans of huge factories,” he said, with areas offering enough industrial land often lacking skilled workers. “In addition, the water usage becomes significant, which can create a public backlash.”
In November, SVolt also announced plans to list on Shanghai’s tech-focused STAR exchange to raise as much as CNY15B ($2.2B). Aside from Great Wall, the cell maker’s backers include Chinese tech firm Xiaomi Corp (HK:1810) (OTC:XIACY) and private equity firm IDG Capital.