SVOLT, a Chinese battery producer, has announced a major expansion in Europe, with plans to construct at least five new battery plants on the continent. The move comes as Europe sets its sights on phasing out gas-powered vehicles by 2035, leading to a surge in demand for EV batteries. SVOLT’s expansion will add 50 GWh of battery production capacity to Europe, on top of two previously announced facilities in Germany.
Despite facing protests from environmental groups, SVOLT is determined to increase its presence in Europe and is currently in talks with three European carmakers to finalize production deals by the end of the year. While the specific brands were not specified, SVOLT is poised to become a major supplier of EV batteries to the continent.
As part of its expansion plans, SVOLT’s parent company, Great Wall Motors, has filed for an IPO on the Chinese stock market, indicating its intention to become a major player in the global EV battery market. SVOLT’s move into Europe reflects a broader trend in the region, with Asian businesses, primarily from China, accounting for as much as 44% of planned battery production capacity.
While CATL currently has the most planned production capacity, it will face stiff competition from new European rivals, including Volkswagen’s PowerCo. and Stellantis’ Automotive Cells Company. As Europe’s domestic automotive industry kicks into high gear to meet the demand for EVs, SVOLT’s expansion will help fuel the growth of the EV industry on the continent.
