Chinese battery manufacturer SVOLT has announced the cancellation of its plans to set up a manufacturing site in the German state of Brandenburg. The decision was made as part of a reassessment of the company’s location strategy, with SVOLT citing difficulties in planning exacerbated by German politicians.
The company’s press release pointed to challenges such as “an already low level of planning security at various levels,” including threats of international punitive tariffs and market distortions due to subsidies. Additionally, a significant customer project cancellation and discussions about the end of combustion engines in the EU were mentioned as factors influencing the decision.
SVOLT had previously announced plans to establish a cell production facility for the European market in Lauchhammer, about 150 kilometers south of Berlin, with a capacity of 16 GWh. The production was scheduled to start at the beginning of 2025. However, the company did not disclose the amount invested in the site before canceling its plans.
Despite the cancellation in Brandenburg, SVOLT confirmed its intention to set up a manufacturing facility in Überherrn, in the German state of Saarland. However, construction has been repeatedly delayed, with the municipal council’s resolution still awaiting approval from the responsible ministry. Legal uncertainties and lawsuits against the project have further hindered progress.
While SVOLT won’t have its own cell production in Europe for some time, the company plans to assemble battery modules and packs from imported cells in Heusweiler, about 30 minutes northeast of the planned production site in Überherrn. The turnkey handover is scheduled for July 1.
“We would like to take this opportunity to express our sincere thanks for the support, cooperation, and trust placed in us at both local and state levels in Brandenburg and Saarland, as well as with our partners,” said Kai-Uwe Wollenhaupt, President SVOLT Europe & Senior Vice President of SVOLT Energy Technology Company Ltd.
In addition to its location strategy, SVOLT also reassessed its sales model, focusing on customized battery systems for EVs and business areas with easier scalability and quicker implementation. This includes traction batteries for commercial vehicles, stationary energy storage systems, and applications in the non-automotive sector.
“We continue to see ourselves as an innovation partner to the automotive industry. However, the current market situation suggests diversification to secure our economic future in the medium term,” said Wollenhaupt. “Adapting our sales orientation is therefore an investment in the future.”
