The Chinese battery manufacturer SVOLT will not be building two factories in Saarland after all
the company is discontinuing its operational business in Europe
SVOLT had already cancelled its plans for a factory in Brandenburg in May
A ministry spokesperson said that SVOLT’s announcement described the move as a “strategic decision,” citing the weak market for electric vehicles in Europe as one of the reasons
SVOLT had asked the ministry to hold talks soon to clarify everything else
SVOLT’s plans in Europe have thus turned out to be a pipe dream. In May 2024
SVOLT had already cancelled its plans for a battery factory in Lauchhammer
but was still sticking to its plans in Saarland at the time
According to Saarländischer Rundfunk (SR), SVOLT is said to have abandoned the planned battery factory on the Linslerfeld near Überherrn months ago, citing the difficult situation on the European electric car market, among other things. According to information from SR, BMW has backed out as a customer
And now the plans for the second Saarland site in Heusweiler are also history
SVOLT Europe is said to have authorised a law firm to dismiss all employees at the end of September
Around half of the former 50 SVOLT employees are said to have already been dismissed
the Saarbrücken Labour Court is currently dealing with three dismissal protection claims from those affected
hopes for a sustainable automotive and supplier industry in the federal state have vanished into thin air for the time being
Michelin in Homburg and Thyssenkrupp in Wadern-Lockweiler are on the brink of closure and there are massive job cuts at Bosch in Homburg
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the battery division of Great Wall Motors that was spun off in 2018
is cancelling its plans for European battery factories
After the cell factory in Brandenburg was cancelled at the end of May
the Chinese company has now also pulled out of the site in Saarland
This means that all of Svolt's plans for Europe have been cancelled
Svolt confirmed this to the Chinese news agency Yicai on Wednesday
The weak demand for electric cars in Europe was cited as the reason for the decision
Svolt offers cobalt-free NMX battery cells
Svolt had already announced battery production in Saarland in 2020
It was to consist of a cell factory in Überherrn and a module and battery production facility in Heusweiler
Svolt wanted to invest around €2 billion in the project; the annual capacity was to be 24 GWh
In 2021, Svolt signed a contract with Stellantis for the supply of lithium-ion batteries from 2025
but there were several delays at the plant in Saarland. In 2022
Svolt therefore announced the construction of a battery cell factory in Lauchhammer
Brandenburg on an existing industrial site
This was to have an annual capacity of 16 GWh
These plans were then cancelled in May 2024 and the plant in Überherrn was also on the back burner
while Svolt wanted to retain the Heusweiler site
Now none of the three factories will be built
This is what the cell plant in Saarland should look like one day
The largest cell factory in Germany to date is the CATL plant near Erfurt with an annual capacity of 8 GWh
There is also a cell factory operated by the Swiss company Leclanché in Willstätt near Kehl
which produces cells with LTO and NMCA chemistry (lithium titanate and nickel-manganese cobalt aluminium)
Production capacity is to be increased to 2.5 GWh
the cells are not intended for electric cars
ferries and stationary energy storage systems
Many companies are currently putting a question mark behind all investments related to electric cars
this will probably not remain so weak for all time; if the EU's fleet limits for 2025 remain in place
And then there will be calls everywhere for cells from Europe again
Our cover picture shows a rendering of the module production facility in Heusweiler
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has announced it will abandon plans to build two factories in Saarland
and will also shut down its European operations entirely by January 2025
This decision follows an earlier cancellation of another gigafactory in Germany in May
even after some equipment had been installed
SVOLT originally planned to establish a cell manufacturing facility in Überherrn
alongside a battery assembly facility in Heusweiler
these projects will now be scrapped as part of what the company describes as a strategic decision driven primarily by the underperformance of the European EV market
The battery assembly facility in Heusweiler was to be commissioned first
producing battery modules and packs with cells imported from outside Europe
The cell manufacturing facility was intended to follow
SVOLT’s revenue strategy in Europe differed from its operations in Asia
Although no formal supply contracts were confirmed
BMW was rumoured to have a contract in place
and SVOLT reported being in “contact and exchange with all European OEMs.”
European battery manufacturing has faced significant challenges over … the past year. Northvolt, a major player in the sector, scaled back its expansion plans, cancelling or pausing several projects. Additionally, it lost a high value contract with BMW
after cell samples failed to meet BMW’s standards
Volkswagen also reduced the planned capacity of its gigafactory in Salzgitter
citing lacklustre EV sales growth across Europe
This announcement came as Volkswagen was beginning to show signs of stress within the automotive industry
Elsewhere, ACC, a joint venture between Mercedes-Benz, Stellantis, and TotalEnergies, paused development on two of its planned gigafactories in Germany and Italy
the Italian government withdrew funding for ACC’s facility in Italy
citing the group’s failure to make a firm commitment to the site
Many of the changes in Europe’s gigafactory and battery pipeline have cited the European EV market as the primary reason for altering or cancelling plans. Within Europe year-to-date (Jan-September) EV sales are down 4%
although this figure obscures considerable regional differences
In markets such as the UK and the Netherlands EV sales are up 14% and 7.8%, respectively, and widely in Europe BEV sales have risen 12% year-on-year. However, EV sales in Germany, Europe’s largest automotive market, have declined by 20% year-to-date, largely due to the government’s unexpected phase out of EV subsidies in December 2023
and Sweden have also seen minor declines in EV sales
SVOLT is just one of multiple players reassessing commitment in response to uneven market growth and shifting policy landscapes across the region
For more information about the EV and battery markets see our research or get in touch.Image credit: SVOLT
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Home » Battery News
the power battery maker that spun off from Great Wall Motor
will build a battery cell plant for the European market in Lauchhammer
the company announced on its official WeChat account on September 9
The plant will be Svolt Energy's first battery cell plant for overseas markets and its second overseas plant
It previously owned a battery pack plant in Heusweiler
The facility previously served as a wind turbine manufacturing facility for wind power giant Vestas
and Svolt Energy will upgrade it with plans already in the works
Svolt Energy's investment will not only give the Vestas plant a new life
but will also contribute to the structural optimization of the electric vehicle industry in the Brandenburg region
said Brandenburg state premier Dietmar Woidke
has been forming a cluster for innovative electric vehicle development in recent years
which is an important reason why Svolt Energy is locating its second project abroad in the region
Many companies in Svolt Energy's supply chain and battery lifecycle are located in the region -- such as globally known materials giant BASF
which entered into a partnership with it in late 2021 to work together on battery materials and their recycling
Svolt Energy plans to produce the cells at its Lauchhammer-based facility and process them into packs at its plant in Heusweiler
Lauchhammer's location advantage helps Svolt Energy serve current customers' projects in a timely manner and meet its expansion capacity goals in Europe more quickly
Svolt Energy became independent from Great Wall Motor's power battery division in February 2018 to work on next-generation battery materials
the company announced that its first cobalt-free battery rolled off the production line in mass production
and was the first such product in the world to come out of the lab and into mass production
Svolt Energy announced that its all-solid-state battery lab had developed China's first 20Ah-class sulfide all-solid-state prototype cells with an energy density of 350-400 Wh/kg
Once the cells are mass-produced, they could enable electric vehicles to achieve a range of more than 1,000 kilometers
Svolt Energy is one of China's largest power cell manufacturers, ranking sixth in August with a 2.49 percent market share in the country
according to data released earlier this month by the China Automotive Battery Innovation Alliance
Svolt Energy is also one of the world's largest power battery makers, with a 1.3 percent share in January-July
The Chinese battery cell manufacturer SVOLT will build its European battery cell factory in the German state of Saarland
The cell factory itself is to be built in Überherrn
and an assembly of modules and packs in Heusweiler
Cell production is scheduled to start at the end of 2023
Representatives of SVOLT Europe and the minister-president of the state of Saarland Tobias Hans made the announcement at a press conference
The Chinese company’s European cell factory is to be built on 840,000 square meters in Überherrn
with a capacity of 24 GWh per year in the final expansion stage
The cell factory is to start production at the end of 2023
A second SVOLT site in Saarland is scheduled to start operations as early as mid-2022
which is about 30 kilometres from Überherrn
modules and packs are to be assembled from battery cells and delivered to the car manufacturers ready for installation
the Chinese company will invest up to two billion euros in the state for the two sites
and up to 2,000 jobs are to be created in the final expansion stage
“We have selected Saarland as our first European production site for SVOLT’s high-end products for a number of reasons: It is not only at the heart of Europe but also represents a region of innovation and technology for the automotive industry,” said SVOLT Energy President Hongxin Yang in a video message
Yang could not attend the event in the state chancellery due to corona restrictions
“The car is one of the central pillars of Saarland as an industrial location,” said Minister-President Hans
“We want to be at the forefront of the structural change in the automotive industry and develop our federal state into a cluster for innovation in Europe
especially in and for the automotive industry
it is about playing a leading role in the development of environmentally-friendly vehicles of the future
We are pursuing a sustainable and innovative mobility concept
we can safeguard jobs as well as the attractiveness of Saarland as a place to live and work and at the same time ensure that we maintain our leading position as a car state.”
Saarland is a car country,” said German Minister of Economics Peter Altmaier
“We want to remain that way in the future
but also the EU Commission are pulling together to accompany the change”
Saarland has thus prevailed among 32 candidates throughout Europe
Saarland is characterised by five factors”
says SVOLT European President Kai-Uwe Wollenhaupt
“These are the available and qualified employees
the central location in the European economic area
an excellent infrastructure and the existing environment of international and innovative companies”
Wollenhaupt justified the decision for two sites instead of the original plan with one plant by citing a “significantly higher implementation speed”
the assembly in Heusweiler is an existing building that SVOLT is converting for its purposes
This work can be carried out in parallel with the construction of the actual cell factory
SVOLT intends to build a cathode material plant and a research centre in Europe in addition to the actual cell factory
A research centre in Saarland is to follow later
But there was no longer any talk of a cathode material factory
SVOLT will focus on the development of subsystems such as battery cells
modules and control systems in Europe according to market conditions”
responsible use of natural resources is at the heart of all associated activities
we are working to establish a transparent supply chain and to continuously improve our production technologies and recycling processes.”
Überherrn could also produce the cobalt-free battery cells that the company announced in July 2019
It was now announced that the test phase in the vehicles is about to be completed and the technology will be available to all customers next year
Some of the cells from Saarland are expected to go to PSA
The French group reportedly signed a supply contract with SVOLT for seven GWh
the cells could be installed in the Citroën e-C3
SVOLT is confident that the factory can quickly be filled with cells for other car manufacturers
The company is in active discussion with all European car manufacturers
the economic development agency of the Saarland
as gwSaar managing director Thomas Schuck stated
gwSaar will also construct the buildings on behalf of SVOLT
Later it will be decided whether the facilities will be sold to SVOLT or only rented out for the time being
there is still neither a sales contract for the site nor a building permit
the first contact with the company was made “very informally” at the beginning of the year
A high level of confidentiality was maintained until the very end
with only a few employees from the State Chancellery and the Ministry of Economics being involved
Hans could also not help but make a small dig at Elon Musk when he pointed out that in other companies the location issue is publicly discussed on Twitter
The Saarland was also in the race for the European Gigafactory or had brought itself into the game
even though Lower Saxony was considered the public favourite
Source: press conference via webcast, svolt-eu.com
Chinese battery manufacturer SVOLT will not set up a manufacturing site in the German state of Brandenburg
The company says it has reassessed its location strategy - and cannot resist taking a jab at German politicians
The company’s press release states: “In addition to an already low level of planning security at various levels – from the threat of international punitive tariffs to market distortions due to protracted and unevenly distributed subsidies,” a “significant customer project has also been cancelled.” In addition
‘the renewed discussions about the end of the combustion engine in the EU are counterproductive to the planned localisation efforts.”
“The automotive market is currently struggling with considerable fluctuations and challenges all over the world
mainly driven by the transformation to electric mobility,” says Kai-Uwe Wollenhaupt
President SVOLT Europe & Senior Vice President of SVOLT Energy Technology Company Ltd
“It has led to some drastic strategy adjustments for some car manufacturers.”
SVOLT announced in September 2022 that it would set up another cell production facility for the European market – with a capacity of 16 GWh
The company had taken over a plant in Lauchhammer
where Vestas previously produced blades for wind turbines
Production was to start at the beginning of 2025
The press release does not mention how much the company invested in the site before cancelling its plans
it has already paid for conversion work on the existing buildings and the installation of the battery production systems
However, it also means SVOLT won’t produce cells in Europe for quite some time. It does confirm that it will set up a manufacturing facility in Überherrn
SVOLT’s first European factory was initially supposed to be up and running by the end of 2023
But construction has been repeatedly delayed for various reasons
there is no planning certainty and thus no progress
“The Überherrn municipal council’s resolution is still awaiting approval from the responsible ministry
planning permission has not yet been granted
lawsuits against the construction project have already been announced
it is currently impossible to predict when we will have final legal certainty
legal certainty is an essential prerequisite and the basis for planning how to proceed
the next step is the final economic feasibility study
SVOLT Europe estimates that this process will still take some time
Any more precise information on the timeline would be purely speculative
as many things are outside the responsibility and sphere of influence of SVOLT Europe,’ the company explains – and emphasises that it currently has no “immediate obligations” at the site
as this is still the responsibility of Struktur Holding Saar (SHS)
It will, therefore, be several years before the company has its own cell production, but SVOLT intends to assemble battery modules and packs from imported cells in Europe soon. That will take place in Heusweiler
about 30 minutes northeast of the planned production site in Überherrn
“We would like to take this opportunity to express our sincere thanks for the support
cooperation and trust placed in us at both local and state level in Brandenburg and Saarland
as well as with our partners,” says Wollenhaupt
We will utilise all opportunities available to us to implement positive impulses for the economy and the environment together with our customers and partners.”
In addition to the location strategy, SVOLT also reassessed its sales model. The company wants to concentrate on the sale of customised battery systems for EVs (SVOLT supplies the LFP batteries for the Citroen e-C3 and its sister models
for example) and “place an additional focus on business areas in which standardised batteries and their systems can be used
which are easier to scale and quicker to implement.” That includes traction batteries for commercial vehicles
stationary energy storage systems and their battery cells
and applications in the non-automotive sector
“We continue to see ourselves as an innovation partner to the automotive industry
the current market situation suggests diversification to secure our economic future in the medium term,” says Wollenhaupt
“This is a decisive step towards becoming more resilient to market fluctuations and
making a significant contribution to the global energy transition
Adapting our sales orientation is therefore an investment in the future.”
the battery cell manufacturer that emerged from the Chinese carmaker Great Wall
has begun setting up a plant in Thailand for the assembly of battery modules and packs for electric and hybrid cars
two production lines are planned – one for the production of battery modules and one for battery pack assembly with an annual capacity of 60,000 units
SVOLT will supply the batteries to existing customers such as Great Wall Motor and Hozon
but is also negotiating with potential new customers in Thailand
but a locally leased facility will be converted
This also explains the short phase between the current start of construction and the planned completion in six months at the latest
The battery modules produced in Thailand are to be used in full hybrids
SVOLT itself does not name an investment sum
but the local medium Cailian reportedly mentioned an investment sum of 30 million dollars last month
The company currently has eleven production sites in China and is planning five battery cell factories in Europe
the company aims to have a production capacity of at least 50 gigawatt-hours in Europe by the end of the decade
this does not fall under the potential five production sites in Europe where cells are to come off the production line
SVOLT’s Dragon Armor Battery is not a new cell chemistry with higher energy density
Depending on the chemistry of the cells used in the Dragon Armor Battery
ranges of over 800 kilometres (LFP) to over 1,000 kilometres (NCM) should be possible
SVOLT has started production of battery packs in Thailand
The first battery pack that has now rolled off the production line is a 60 kWh battery with LFP cells
which Ora will use in its electric model Good Cat
The plant has two production lines – one for battery modules and one for battery packs with an annual capacity of 60,000 units
After the battery company had started producing its first locally-made packs in late 2023 as reported above
volume production for several brands is underway
SVOLT has confirmed building another cell factory for the European battery industry in Germany
is a former wind turbine plant owned by Vestas
This is to make up for the delays SVOLT is now facing in Saarland. The Chinese company has been planning to produce battery cells in central Europe for some time and had confirmed factories in the German state of Saarland in November 2020
SVOLT aims to make cells near the town of Überherrn
the new plans in Brandenburg come on the back of said delays at the Saarland sites
SVOLT is planning to start production in Brandenburg in early 2025
VP of Sales & Marketing of SVOLT Europe
The company targets an initial capacity of 16 GWh
That sounds like construction will quick (and rushed)
The former Vestas site is a so-called brownfield project
from the previous owner at the end of August and will now “repurpose the majority of the existing halls”
rebuilding measures and extension works will also be necessary and realised in the near future
The company adds that it was developing a master plan including a detailed schedule for all modernisation and building measures
the construction of the Saarland sites will take much longer than planned
According to the Saarbrücker Zeitung paper
Kramskoy does not expect SVOLT to produce battery cells in Überherrn before 2027 – that is four years later than initially announced
Even though Heusweiler builds on an existing building like Brandenburg
there would also be delays at this second Saarland site for the assembly of modules and packs
Production was supposed to start in the middle of this year with parts from other SVOLT plants
Now the company says it will only begin assembly by February 2024
Hantsch-Kramskoj did not detail the reasons for the delay but pointed to the project being “very complex”
The Saarland sites would get the time they require
Still, SVOLT has to deliver another driver for selecting the Lauchhammer site reasonably quickly. So far, PSA is confirmed as a customer and signed an option for 7 GWh as reported
President of SVOLT Europe & VP of SVOLT Energy Technology
said he was happy that they were able to conclude the conversations with Vestas timely and take over the site
also went on to “explicitly thank all those involved for their dedicated efforts to bring a successor company to the former Vestas site as swiftly as possible.”
The site offers 255,000 square metres of space
and SVOLT has the right of first refusal on an adjacent free area of another 71,000 sqm
Hantsch-Kramskoj referred to the project as a “gigafactory” when speaking to the local press
the new factory won’t compare to the Tesla plant in Grünheide
As for synergies between the plants in Brandenburg and Saarland
SVOLT expects to utilise battery cells produced in Lauchhammer at the future assembly site in Heusweiler
At least until the Saarland cell factory comes online
SVOLT aims to produce between 22 and 32 Gwh
That is batteries for about 300,000 to 500,000 e-vehicles per year
SVOLT has not disclosed which cells may be made in Brandenburg (and Saarland)
the company has pushed cobalt-free battery cells since July 2019
These have undergone testing for at least two years now
and the result promises a range of over 1,000 kilometres for electric cars in future
svolt-eu.com, saarbruecker-zeitung.de (delay Saarland