It is reported that SVOLT has decided to suspend construction on its two battery plants in Germany, with no timetable for resumption.
SVOLT initially planned to build two battery plants in Germany. The first, a battery module production and assembly plant in Saarland, was announced in November 2020, with a design capacity of 24 GWh and a total investment of 2 billion euros (approximately $2.16 billion US). Completion was initially expected by mid-2024.
The second plant, located in Brandenburg, was planned as SVOLT’s first cell production facility, with a capacity of 16 GWh. This project was officially announced in September 2022, with a target production start in 2025.
So far, SVOLT has not yet commented on the news of the suspension.
The construction of SVOLT’s German plants has faced ongoing challenges in adapting to local regulations, resulting in frequent delays.
According to prior reports, the Saarland facility has been delayed primarily due to setbacks in obtaining planning permits, as well as dealing with lawsuits related to fire safety, traffic planning, noise, and environmental protection. Environmental concerns are particularly pressing, as the proposed site in Saarland is located within a Tier-3 water protection zone, making pollutant emissions a critical issue under review.
These regulatory challenges are only part of the problem. The loss of a major client, multiple EU policies, and substantial investment costs may also be key reasons behind the halt in construction.
Regarding client orders, SVOLT secured a nearly 90 GWh order from BMW’s European division in October of last year. In May, however, reports surfaced that BMW was the major client SVOLT had lost. Although SVOLT denied this, it confirmed the loss of an important customer.
Additionally, at the 4th Battery Day held last year, SVOLT’s Chairman Yang Hongxin stated that by 2024, there would be fewer new production lines as the company transitioned to stable operations, with the proportion of new and ramping-up production lines decreasing from 64% to 14%. This may signal a shift away from large-scale, aggressive investment and expansion.
In terms of targeted EU policies, the EU published a draft about carbon footprint calculation for EV batteries in April. And in October, EU member states approved additional tariffs on EVs manufactured in China. These policy changes pose significant risks to the investments of Chinese new energy companies in Europe, including SVOLT.
Source: WeChat Official Account—锂电前沿
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