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

EU Ambassador & Munich Security Conference Chair Headline Chinese Communist Party Influence Event.

  The Vice Chairman of the Munich Security Conference and a former Ambassador of the European Union to the U.S. headlined an event sponsored by a leading Chinese Communist Party influence group The China-United States Exchange Foundation (CUSEF) CUSEF has been identified by the US government as part of China’s “United Front” which works “to co-opt and neutralize sources of potential opposition to the policies and authority of its ruling Communist Party.” O’Sullivan Director General of the Institute of International and European Affairs Has held a variety of influential positions within the European Union including Chief Operating Officer of the European External Action Service (EEAS) Ruge also has ties to the EU’s military infrastructure Vice Chairman of the Munich Security Conference https://thenationalpulse.com/2022/10/20/eu-amb-and-munich-chair-headline-cusef-webinar/
Post a Comment
Read more