China’s Gotion High Tech Co plans to set up a third of its production capacity overseas by 2025 to meet the demand from foreign electric vehicle (EV) makers and energy storage household clients.
The company, based in Hefei in Anhui province, said in a statement on Tuesday it would build a total battery production capacity of 300 gigawatt hours (GWh) over three years. In 2021, Gotion produced 16 GWh.
The company said a third – 100 GWh – of its planned total capacity would be located overseas.
Chinese battery makers are accelerating expanding production in overseas markets where rivals such as Panasonic and LG Energy Solution are more dominant.
First Plant in Germany
Gotion’s move also follows that of its Chinese competitor CATL, the world’s largest battery giant, which aims to start cell production at its German plant by the end of the year.
CATL’s chairman Zeng Yuqun said earlier that it is also exploring possibilities to localise production for overseas automakers in their countries.
Gotion, which counts Volkswagen as its largest single investor, said it will start building its first overseas battery plant in Gottingen, Germany by the end of this year and aims to start production at the earliest in the following September.
The plant, which will be upgraded from an old facility Gotion bought from Bosch last year, will develop and manufacture batteries for uses in EVs and energy storage in Europe.
The company also unveiled its first series of energy storage products for overseas markets on Monday.
Gotion is the fourth biggest EV battery maker in China by sales volume and supplies its lithium-iron phosphate batteries to carmakers including Volkswagen and Tata Group.
- Reuters with additional editing by Jim Pollard
China Battery Maker CATL Raises $6.7bn in Private Placement
Tata Taps Thrifty Route to Dominate India’s Electric Car Market
Chinese Firms Flock to Switzerland as US Delisting Risks Loom