BMW and Volkswagen's battery ambitions in Europe could be boosted by CATL, as they ramp up production at their Hungary plant.
Chinese EV Battery Giant CATL Expands into European Market
Contemporary Amperex Technology (CATL), the world's largest maker of power sources for electric vehicles (EVs), is making a significant push into the European market. The company, which controls more than 70% of the global market, is launching two new battery packs to cater to the region's demands.
The first of these new battery variants is a long-life variant, boasting a 12-year lifespan and a driving range of 758km. The second is a fast-charging lithium-ion phosphate (LFP) variant, capable of driving up to 478km after just 10 minutes of charging. These new offerings are designed to compete with BYD's proprietary blade batteries and cater to European carmakers like BMW and Volkswagen.
CATL's commitment to the European market is evident in its €7.3 billion factory in Debrecen, Hungary. With a production capacity of 100 gigawatt-hours (GWh), this facility is capable of powering 2 million EVs, each with a driving range of 500km. Production at the Debrecen plant is scheduled to start at the end of this year.
This is not CATL's first foray into Europe. The company already operates a factory in Germany's Thuringia state, which began production in 2023 with 14GWh of capacity.
Davis Zhang, a senior executive at Suzhou Hazardtex, a supplier of specialized batteries, stated that CATL is signaling its intent to develop more products tailored to the European market's demands. Some of these products may require research and development efforts to fit in with European EVs.
CATL's clients include Tesla and Fiat owner Stellantis. The company's battery installation volume between January and July increased by 34% to 221.4GWh. CATL held a 37.5% share of the global battery market in the same period, according to SNE Research.
The proceeds from CATL's US$5.22 billion initial public offering in Hong Kong in May will be used to replenish the construction of factories abroad. CATL also plans to begin mass production of its Naxtra sodium-ion battery this year.
Chinese-made batteries have a production and technological advantage over their international rivals. This advantage is evident in CATL's success in the global market and its ability to meet the urgent demand for electrification in the European market to help accelerate the transition to green transport.
Sales outside mainland China account for about 30% of CATL's global total, indicating a growing global presence for the company. As CATL continues to expand, it is poised to play a significant role in the global shift towards electric vehicles.
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