BMW and Volkswagen likely to gain advantage in European market due to CATL's focus on battery production, as the Hungarian manufacturing plant expands.
CATL Unveils New Battery Packs to Boost European Presence
Contemporary Amperex Technology (CATL), the world's largest electric vehicle (EV) battery maker, has announced the launch of two new battery packs aimed at strengthening its position in the European market.
The first variant is a long-life battery with a driving range of 758km (471 miles) and a usable lifespan of up to 12 years. This battery is designed to appeal to European customers, particularly carmakers like BMW and Volkswagen, as they compete with BYD's proprietary blade batteries.
The second variant is a fast-charging lithium-ion phosphate (LFP) power pack. This battery can provide a driving range of up to 478km after just 10 minutes of charging, making it an attractive option for drivers seeking quick charging solutions.
CATL's Debrecen factory in Hungary, its second production facility in Europe, is set to begin production later this year. The factory, with 100 gigawatt-hours (GWh) of production capacity, is sufficient to power 2 million EVs, each with a driving range of 500km. The proceeds from the factory's construction will be funded by the US$5.22 billion initial public offering (IPO) that CATL completed in Hong Kong in May.
Chinese-made batteries have seen a surging adoption of electric cars on the mainland, resulting in an overwhelming production and technological advantage over international rivals. This advantage is reflected in CATL's control of more than 70% of the global market, a position that Paul Gong, head of China automotive research at UBS, attests to.
CATL's new battery launches are an active response to the urgent demand for electrification in the European market. The company seeks to help accelerate the transition into green transport globally.
Davis Zhang, a senior executive at Suzhou Hazardtex, a supplier of specialized batteries, stated that CATL is sending a message to the European market that it will design more products to cater to their demands. Some of these products may require research and development efforts to fit in with European EVs.
Sales outside mainland China account for about 30% of CATL's global total. Key European automakers supplied by CATL include BMW and Mercedes-Benz, and CATL also supplies global carmakers such as Hyundai, Honda, and Volkswagen; CATL has worked with Honda on a strategic partnership for batteries since 2020.
Production at the Debrecen plant is scheduled to start at the end of this year, further solidifying CATL's presence in the European market. The company's battery installation volume between January and July increased by 34% to 221.4GWh, indicating a strong demand for its products.
This article was originally published in the South China Morning Post (SCMP).
In conclusion, CATL's new battery packs and the expansion of its Debrecen factory in Hungary are strategic moves aimed at strengthening its position in the European market and contributing to the global transition into green transport.
