• Thu. Aug 18th, 2022

Chinese battery maker Gotion will locate a third of its production overseas by 2025

ByRandall B. Phelps

Jun 28, 2022

The logo of an electric car is painted on the road during the opening ceremony of Latin America’s first public charging station, in Santiago April 20, 2011. REUTERS/Ivan Alvarado

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SHANGHAI, June 28 (Reuters) – Chinese battery maker Gotion High Tech Co (002074.SZ) said it plans to locate a third of its production capacity outside China by 2025 to meet growing demand. foreign electric vehicle (EV) manufacturers and residential energy storage customers.

The company, based in Hefei in Anhui province, said in a statement on Tuesday that it plans to build a total battery production capacity of 300 gigawatt hours (GWh) in three years, reiterating a target it had announced. for the first time last year. In 2021, Gotion produced 16 GWh.

The company said 100 GWh of its total planned capacity would be located overseas.

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Chinese battery makers are accelerating production expansion in overseas markets where rivals such as Panasonic (6752.T) and LG Energy Solution (373220.KS) are more dominant.

Gotion’s decision also follows that of its Chinese competitor CATL (300750.SZ), the world’s largest battery giant, which aims to start cell production at its German factory by the end of the year. CATL Chairman Zeng Yuqun said earlier that he was also exploring possibilities of locating the production of foreign automakers in their countries.

Gotion, which counts Volkswagen as its biggest investor, said it would start building its first overseas battery plant in Göttingen, Germany, by the end of this year and aims to start production as soon as possible. early next September.

The plant, which will be upgraded from an old facility Gotion bought from Bosch last year, will develop and manufacture batteries for electric vehicles and energy storage in Europe.

The company also unveiled its first series of energy storage products for overseas markets on Monday.

Gotion, China’s fourth-largest electric vehicle battery maker by sales volume, supplies its lithium iron phosphate batteries to automakers including Volkswagen and the Tata Group.

(This story corrects last sentence of second paragraph to show 2021 production, not capacity)

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Reporting by Zhang Yan, Brenda Goh; Editing by Simon Cameron-Moore

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