SVOLT Energy Terminates European Subsidiary Operations, China Parent Assumes Control
Svolt Energy, a battery manufacturer spun off from Great Wall Motors, has confirmed the termination of its European operations following local media reports of halted battery plant projects in Germany.
On October 26, this company informed media that it will cease commercial operations of its European subsidiaries effective January 31, 2025. SVOLT attributed the decision to unmet expectations in Europe’s EV market growth, citing “factors beyond the company’s control.”
The company stated it would handle post-operational matters directly with its European clients and restructure its European focus around technical services, engineering support, warehousing and logistics, as well as post-sales maintenance.
Originally, Svolt planned two German plants: a €2 billion (approximately $2.16 billion US), 24GWh battery module/pack facility in Saarland (scheduled for mid-2024 completion) and a 16GWh cell plant in Brandenburg (targeting 2025 production).
However, Caixin reported on October 24, 2024 that both projects were suspended indefinitely due to financial strain from domestic challenges. Insiders noted the European plants required a prohibitive 30 billion yuan (approximately $4.2 billion US) investment, which is too much for a lithium-ion battery manufacturer of SVOLTS’s size to afford.
Notably, Svolt China assumed management of its European subsidiary in November 2024, according to Saarbrücker Zeitung. Despite announcing plans to cease its European operations by the end of January 2025, the legal entity “SVOLT Europe” will remain in place. This raises questions about the company’s future strategy in Europe. While maintaining the “SVOLT Europe” legal entity, the company’s Saarland project remains in limbo pending profitability assessments and legal reviews. Representatives from SVOLT China met with Saarland’s Minister of Economic Affairs Jürgen Barke and Strukturholding Saar in Saarbrücken in December 2024 to reaffirm interest in the Überherrn site, though permit applications under Germany’s Federal Immission Control Act remain undecided.
Gotion High-Tech Announces to Invest €2.5 Billion in Battery Plants in Morocco and Slovakia
Volkswagen-backed Gotion High-Tech unveiled plans for two overseas battery plants totaling €2.514 billion (approximately $2.6 billion US):
Morocco: a €1.28 billion (approximately $1.32 billion US), 20GWh/year facility, approved under a June 2024 investment pact by the government of Morocco
Slovakia: a €1.234 billion (approximately $1.28 billion US) joint venture for 20GWh/year lithium battery production.
The move aligns with Gotion’s strategy to deepen global market penetration and meet international EV demand.
CATL Continues Ramping Up German Battery Production
CATL, China’s battery giant, continues expanding production at its Arnstadt plant in Thuringia, operational since 2023. The facility, which supplies cells for Porsche Macan and Audi Q6 e-tron models, currently employs 1,700 workers, including Chinese technicians transitioning knowledge to local staff.
“The plant is currently operating at high capacity to meet customer demand. The plant’s capacity increase also depends on further market development,” a CATL spokeserson said.
Aiming to scale capacity in line with market demand, CATL is recruiting 105 specialists in Arnstadt and training 30 apprentices annually. Concurrently, its second European plant in Debrecen, Hungary (scheduled for late 2025), lists 80 open positions.
Source: WeChat Official Account—Batteryman Helps Batteryman
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