Chinese battery manufacturer CATL, Fujian, China, has updated the plans for its new battery factory in Erfurt, Germany to include increased capacity of up to 100 GWh per year, reports electrive.net. Originally, the company had announced a capacity of 14 GWh per year and a total investment of €240 million in the site by 2022, however, it is now expected that the battery cell factory will be considerably larger than first thought.
Matthias Zentgraf, head of CATL’s European unit, told electrive, “We thought in the middle of last year that the large orders had been awarded. But that was not the case. It goes further upwards. The inquiries of the automobile manufacturers are here! With realistic planning, we assume a demand of 100 GWh in the year 2025 – and that’s planning with a low level.”
The company has secured two areas of 35 hectares (86 acres) each and a further 17 hectares (42 acres) in which the necessary preliminary products are to be produced. “Our initial planning is currently being revised,” stated Zentgraf. Two production halls were initially planned for the first 35-hectare field. “Perhaps the halls will now be larger,” he continued. “The environment has changed considerably, the new CO2 targets lead to a faster eMobility ramp-up.”
Among those customers expected to be supplied by CATL’s Erfurt site are Daimler, BMW, Jaguar Land Rover, PSA group and more. As a result of the European Union’s decision to reduce passenger car CO2 emissions by 37.5% by 2030 compared to 2021, automotive manufacturers are now under pressure to sell many more electric cars annually by 2030 than many previously forecast. Volkswagen alone expects to have to sell around 600,000 more electric cars annually by 2030 than originally calculated.
Zentgraf stated his belief that “the automotive industry and we will get these electric cars on the road on schedule and in high quality,” however, it was added that the primary barrier will be the willingness of customers to purchase electric vehicles.