CATL to gain approval for battery facility in Germany

CATL to gain approval for battery facility in Germany

2 October 2019

The Chinese company CATL is planning to build a factory to produce battery cells for electric vehicles (EVs) in the German state of Thuringia.

Anja Siegesmund, Environment Minister for the Green Party, is scheduled to grant official permission to start construction of the facility at a meeting with CATL representatives in the city of Jena this afternoon. This follows a review into the environmental aspects of the project by the State Office for the Environment, Mining and Nature Conservation.

The Chinese manufacturer plans to invest up to €1.8 billion in the new production plant near Arnstadt in the coming years, depending on the development of the market for EVs.

Supply agreements

The new CATL site will supply lithium-ion cells for use in battery packs for EVs from BMW and other manufacturers.

BMW has said it plans to source €4 billion worth of battery cells from CATL over the next five years. The contract sees €1.5 billion worth of cells supplied from the new CATL plant in Germany and the rest will come from China.

The vehicle manufacturer is debating whether to begin production of battery cells itself but will rely on suppliers in the meantime. CATL is BMW's second battery supplier, and the company is talking to other manufacturers to secure a third supply, according to a spokesperson.

Volvo Cars has signed an agreement with CATL, as well as with LG Chem, to supply both itself and subsidiary EV brand Polestar.

Also Toyota has entered a supply partnership with CATL as the Japanese manufacturer seeks shipments of EV batteries.

The approval of CATL's new plant in Germany follows only two days after Webasto started production of batteries for EVs in Germany.