Companies invest in EV battery factories in Europe – EQ Mag

Europe is seeking to lure electric vehicle (EV) battery makers to build factories in the region as the bloc – home to carmakers such as Volkswagen and Stellantis – tries to cut its dependency on Asia and win a green subsidy race with the United States.

They also want to attract suppliers of components and ingredients for making electric vehicles and their batteries.

Below are recent investments announced by companies:

GERMANY

Sweden’s Northvolt said on May 13 it will invest 3-5 billion euros ($3.30-5.50 billion) in an electric vehicle battery plant in Heide in the northern state of Schleswig-Holstein as long as subsidies are approved. One source close to the matter estimated the subsidies at more than 600 million euros.

Volkswagen (VOWG_p.DE) plans to build six battery factories in Europe totalling 240 gigawatt (GWh) of capacity by 2030. Production at its first battery plant, “SalzGiga”, in Salzgitter in the Lower Saxony region will start in 2025.

China’s CATL (300750.SZ), which has been expanding rapidly outside China, is ramping up production at its plant near Erfurt in the central state of Thuringia.

Germany’s BASF (BASFn.DE) is building a battery materials site in the eastern city of Schwarzheide in Brandenburg.

U.S. Microvast (MVST.O) built a factory in Ludwigsfelde, south of Berlin.

Automotive Cells Company (ACC) – a joint venture of Stellantis , Mercedes Benz (MBGn.DE) and TotalEnergies (TTEF.PA) – plans to spend over 7 billion euros on three gigafactories in Europe, with a capacity of 40 GWh each by 2030. One will be located in Kaiserslautern in the western state of Rhineland-Palatinate.

Gigafactory is a term popularised by Tesla CEO Elon Musk and refers to plants producing batteries on a large scale.

FRANCE

The joint venture ACC is building a gigafactory in Billy-Berclau Douvrin, France, as part of its plan for three gigafactories in Europe. ACC will inaugurate the gigafactory on May 30, with operations starting in the second half.

Taiwan’s ProLogium announced on May 13 plans for a 5.2-billion-euro plant in Dunkirk – its first such overseas investment – after France offered deal sweeteners and competitive power prices, executives from the company said.

Envision is investing up to 2 billion euros in its AESC gigafactory in Douai close to the electric car hub known as “Renault ElectriCity”. The plant will have a capacity of 9 GWh in 2024, with the aim of reaching 24 GWh by 2030.

“Renault ElectriCity” pools three of the group’s plants in northern France, Douai, Ruitz and Maubeuge.

French start-up Verkor plans to build a gigafactory in Dunkirk, for a targeted capacity of 12 GWh, enough to power more than 100,000 vehicles. Renault (RENA.PA) would be its biggest supplier.

SPAIN

Spain, Europe’s largest carmaker after Germany, signed last July a deal with China’s Envision to build an EV battery plant worth 2.5 billion euros in Navalmoral de la Mata in the central-western region of Extremadura.

German carmaker Volkswagen and its partners said last year they would invest 10 billion euros to build a battery plant in Sagunto near Valencia, with production to start by 2026, and produce electric vehicles at its two car factories in Spain.

BASQUEVOLT plans to invest more than 700 million euros to build a plant in the Basque Country.

Slovakian battery manufacturer InoBat said last October it had signed a declaration of intent with the Spanish government to set up an electric vehicle battery factory in central Spain’s city Valladolid, expected to cost 3 billion euros.

China’s BYD Co (002594.SZ), the world’s biggest seller of EV and plug-in hybrids, could request funds from a revamped government scheme called PERTE aimed at encouraging EV production in the country, Spanish newspaper Expansion said in April.

Volkswagen and Renault also plan to request funds from the revamped PERTE scheme. Stellantis and newcomer AEHRA may do the same.

India’s Tata Group said in February it was looking at Spain or Britain as possible battery factory locations.

ITALY

The joint venture ACC plans to spend over 2 billion euros to develop a gigafactory in the southern city of Termoli, as part of its plan to spend over 7 billion euros on building three gigafactories in Europe. Operations are expected to start in 2026.

($1 = 0.9084 euros)

Source: Reuters