Alternet Systems Inc ALYI

Germany Lags Behind Asia in E-Car Battery Race

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The Chinese conglomerate CATL wants to build Europe's largest electric car battery plant near Erfurt, Germany. Having failed to build a gigafactory of their own, German carmakers are worried the project represents a mortal threat.

2-22-19

The Chinese want to invest 240 million euros ($272.3 million), creating approximately 600 jobs and producing battery cells with a total capacity of 14 gigawatt hours (GWh) per year. That would be enough to power 300,000 BMW i3 model electric cars. And that's only meant to be the beginning. At the end of last year, Zentgraf says, the company got a "real boost in orders." The project's target size is now 60 GWh, and he even believes 100 GWh are realistic: "We have a lot of work ahead of us," he said.

CATL's plans in Erfurt are unparalleled in terms of size. That's why the German car industry is keeping close tabs on the development, half in awe, half in bewilderment, as a Chinese company establishes itself as a primary supplier of a core electric car component for BMW, Daimler and the like. Battery systems make up about a third of electrical cars' net added value. How did that happen in the first place? And is that kind of development even desirable?