SVOLT will not build a battery factory in Germany

Chinese battery manufacturer SVOLT will not set up a manufacturing site in the German state of Brandenburg. The company says it has reassessed its location strategy – and cannot resist taking a jab at German politicians, who make planning difficult.

The company’s press release states: “In addition to an already low level of planning security at various levels – from the threat of international punitive tariffs to market distortions due to protracted and unevenly distributed subsidies,” a “significant customer project has also been cancelled.” In addition, ‘the renewed discussions about the end of the combustion engine in the EU are counterproductive to the planned localisation efforts.”

“The automotive market is currently struggling with considerable fluctuations and challenges all over the world, mainly driven by the transformation to electric mobility,” says Kai-Uwe Wollenhaupt, President SVOLT Europe & Senior Vice President of SVOLT Energy Technology Company Ltd. “It has led to some drastic strategy adjustments for some car manufacturers.”

SVOLT announced in September 2022 that it would set up another cell production facility for the European market – with a capacity of 16 GWh. The company had taken over a plant in Lauchhammer, about 150 kilometres south of Berlin, where Vestas previously produced blades for wind turbines. Production was to start at the beginning of 2025. The press release does not mention how much the company invested in the site before cancelling its plans. However, it has already paid for conversion work on the existing buildings and the installation of the battery production systems.

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