Skip to main content

Chinese Battery Makers Back Out Of Germany Amidst Cooling EV Demand

 Chinese electric vehicle battery producers are scaling back their expansion in Germany due to a drop in EV sales, according to Nikkei Asia.

SVOLT Energy Technology, a spin-off from Great Wall Motor, announced the suspension of its planned battery cell plant in Lauchhammer, Brandenburg, attributing the decision to a "New European strategy" and a major order cancellation, reportedly from BMW. Additionally, SVOLT expressed uncertainty about its factory project in Ueberherrn, Saarland, due to ongoing legal challenges.

If impeded, SVOLT's only operational facility in Germany will be a plant in Heusweiler, set to open on July 1, which will assemble battery cells into packs and modules.

Kai-Uwe Wollenhaupt, president of SVOLT Europe said this week: "At SVOLT, in addition to the already low level of planning security at various points - from the threat of international punitive tariffs to market distortions due to lengthy and unevenly distributed subsidies - a significant customer project has now also been lost." The Nikkei report notes that SVOLT's decision follows that of battery behemoth CATL. CATL halted its expansion in Arnstadt after Volkswagen reduced EV production in Zwickau.

The decline in Chinese investment in German battery production aligns with Germany's late 2023 decision to end EV purchase subsidies, leading to a drop in electric car registrations to 12.2% in April.

In Europe, this shift comes amid broader controversies, such as the EU's 2035 ban on combustion engines, which is increasingly criticized by German politicians like Carsten Linnemann of the CDU, who argue it threatens Germany's economic prosperity.

Kai-Christian Moeller, a deputy spokesperson for the Fraunhofer Battery Alliance added: "The cancellation of subsidies made several German automakers push back their plans for an end of production of combustion-powered cars, while the average consumer does not see any cost advantage in driving EVs over gas-powered cars" Ferdinand Dudenhoeffer, director of the Center for Automotive Research in Bochum, concluded: "Those tariffs would artificially increase the price of electric cars for European consumers, and I have already heard that auto parts suppliers are stopping orders for EV production and that combustion engine plants are being spruced up for a few more years." 

https://www.zerohedge.com/markets/chinese-battery-makers-back-out-germany-amidst-cooling-ev-demand

Comments

Post a Comment

Popular posts from this blog

Fauci Files Reveal Pfizer Helped Biden Rig 2020 Election

 Pfizer secretly colluded with Joe Biden's team to help him rig the 2020 election against Trump, according to new Fauci documents. In his new book, "On Call," Fauci admits that Albert Bourla, the CEO of Pfizer, called him the night after Biden was declared the winner of the election, to inform him of Pfizer's "Game-changing results" from the rigged mRNA trial. "On November 7, after the absentee ballots were counted, Joe Biden was declared the winner of the presidential election. It was the very next night that Albert Bourla, Pfizer's CEO, called me away from my neighbors' fire pit to inform me about the game-changing results from the Pfizer mRNA vaccine trial. I finally thought we had truly turned a corner in defeating this terrible disease." Today reports: In another interesting tidbit, Fauci discusses Trump's FDA Commissioner Stephen Hahn declaring that he would not go along with the Trump Administration's plan to roll out the vac...
Post a Comment
Read more

Republicans Withdraw $1 Billion From BlackRock Due To Its ESG Policies

  Multiple U.S. states governed by Republicans are withdrawing state funds from BlackRock's management, as they disapprove of the ESG investment policies of the world's top asset manager, the Financial Times reports. In recent weeks, Louisiana, South Carolina, Utah, and Arkansas have announced they would divest funds from... For months now, Republican states have said they would not do business anymore with asset managers who have ESG-aligned investment policies, which, the states say, show that those financial firms are boycotting the oil and gas industry. Texas is leading the campaign against this movement The Lone Star State published a list of financial firms that could be banned from doing business with Texas, its state pension funds, and local governments. https://oilprice.com/Latest-Energy-News/World-News/Republicans-Withdraw-1-Billion-From-BlackRock-Due-To-Its-ESG-Policies.html
Post a Comment
Read more

The Biden-Harris White House Has An Iranian Spy Leaking U.S. Intelligence In It

 The question is, how did classified intelligence from the United States, showing Israeli military movements that suggest broader action against Iran, get to Tehran? The answer raises uncomfortable questions for the Biden-Harris White House, which has opposed Israel every step of the way in responding to Hamas, Hezbollah, and Iran. Defying Biden got Israel the entire leadership of Hezbollah and Hamas, with the ultimate threat still looming: Iran and its nuclear program. Operations against Iran are being assessed also because Iran has started firing ballistic missiles into Israel, targeting civilian centers across the country. If Israel is close to launching a broader offensive against Iran, leaking U.S. intelligence would be a way to both try and deter Israel and give more warning to Iran. In 2012, similar allegations were made against the Obama administration when U.S. intelligence leaks showed that Israel was working towards using "Azerbaijan as a base of operations in the event...
Post a Comment
Read more