The Chinese battery manufacturer relies on Germany

The Chinese battery manufacturer Svolt wants to invest billions in new factories in Saarland and relies on the quality of German employees and machines. It's hard to believe, but Germany is slowly but surely developing into a popular location for battery production for electric vehicles. Daimler has started manufacturing its own high-performance battery systems in its traditional plant in Hedelfingen, Volkswagen is investing in Salzgitter in the production of sustainable solid-state batteries, Porsche wants to build a battery factory for high-performance cells in Tübingen, and Opel parent Stellantis wants to produce in Kaiserslautern in the future. For two Chinese companies, the prospect of local self-sufficiency for German automobile manufacturers is apparently no obstacle to realizing big plans in this country. After CATL in Thuringia, another major producer from the People's Republic, Svolt in Saarland, wants to invest billions in its expansion in Europe. There is talk of up to two billion euros in Saarland, with CATL it should be around 1.8 billion euros. "We see some very innovative companies in Europe, which we do not regard as competitors, but rather as market companions," says Svolt European boss Kai-Uwe Wollenhaupt in an interview with ntv.de. "Healthy competition is important to drive innovations in the areas of range, fast charging, sustainability and safety." But competition is also the reason why the prices of batteries are falling continuously. A few years ago car manufacturers were paying several hundred euros per kilowatt hour of output; today it is only around 100 euros. Trend: falling further. "We assume that in 2025 there will be cost parity between conventional combustion and battery-electric vehicles without CO2 emissions - at 65 euros per kilowatt hour," says Wollenhaupt. That sounds like a declaration of war for an already highly competitive market. But does such a large investment really make sense given falling prices and increasing competition? Or is it really an incalculable risk for companies? No, means Wollenhaupt. Because the calculation looks different: The falling prices for the kilowatt hour will further increase the demand for e-cars because they will in turn become cheaper for the consumer. The battery manufacturers will then generate the necessary sales from the bulk. Wollenhaupt is certain: "The needs of the automotive industry will be enormous in the coming years. Svolt batteries alone will not be able to meet this demand." Annual production capacities of 24 gigawatt hours are to be created at two locations in Überherrn and in Heusweiler, 30 kilometers away. Up to 500,000 electric cars could be equipped with it.