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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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.”
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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A Dutch para-dressage team selfie at the competition in Uberherrn
Joyce Heuitink (Chef D'Equipe) and Nicole Den Dulk
A perfect 10 from Dutch rider Rixt Van Der Horst helped the Netherlands continue their impressive run of victories at the recent three star para-equestrian dressage competition held 4-5 July in Uberherrn
Competing in the middle of a blistering heatwave and against an international field of riders from as far afield as Singapore
the Dutch team took the majority of the individual medals and the Nations Cup team contest as well
Grade II rider and current double World Champion Van Der Horst took both individual titles in her class riding Uniek N.O.P
to score 73.619% in the individual test and 79.083% in the freestyle
she finished ahead of Germany’s Steffen Zeibig in second place and the USA’s Rebecca Hart
Van Der Horst secured a perfect score of 10 points for one of the moves in her individual test
took the individual grade IV title on Alphaville N.O.P
with 73.730% ahead of Russian rider Natalia Martyanova and France’s Nathalie Bizet
Martyanova went one better to take the freestyle however
taking the win with a score of 74.417% on Iilion ahead of Germany’s Carolin Schnarre and the Netherlands’ Sabine Peters
The grade III category was again dominated by the Dutch
with Lotte Krijnsen winning first (71.098%) and second place in the individual test on her horses Rosenstolz and Zarienta
Sanne Voets completed the Dutch sweep with a third-place finish
Krijnsen took the freestyle too (76.167%) ahead of France’s Louise Studer and another Dutch rider
Austria’s Pepo Puch was dominant in the grade Ib competition
Puch won the individual title (75.747%) ahead of the Netherlands’ Nicole Den Dulk and Canada’s Ashley Gowanlock in second and third place
Those positions were repeated in the freestyle competition
which Puch also took with a score of 78.083%
Singapores Laurentia Tan scooped up both titles on Ruben James; Tan scored 75.725% for the individual test and 77.917% for the freestyle
The competition preceded the Hartpury Festival of Dressage
both events which provided a glimpse of prospects ahead of the International Equestrian Federation (FEI) Para-Equestrian Dressage European Championships in September in Deauville
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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SVOLT Europe responds to current market developments: Expanded sales focus and adjustment of location strategy
SVOLT Europe is expanding its sales focus and
The reasons for this include the current highly volatile automotive market
the current lack of planning and legal certainty for the construction of production facilities and the fact that an extensive customer project will not be realized as planned
The automotive market is currently struggling with considerable fluctuations and challenges all over the world
mainly driven by the transformation to electric mobility
“This is leading to some drastic strategy adjustments for some car manufacturers
in addition to already low planning certainty at various levels — from the threat of international punitive tariffs to market distortions due to lengthy and unevenly distributed subsidies — a significant customer project has now also been lost
the renewed discussions about the end of combustion engines in the EU are having a counterproductive effect on the planned localization efforts.”
In order to take account of this volatile market situation and remain competitive
SVOLT Europe has expanded its sales focus and reassessed its location strategy
the Lauchhammer site in Brandenburg will not be realized as planned
The use of the site in Heusweiler in Saarland is still being planned in the context of the sales expansion that has now been decided
The complete turnkey handover of the site will take place on July 1
“We would like to take this opportunity to express our sincere thanks for the support
cooperation and trust placed in us at both the local and state levels in Brandenburg and Saarland
I would also like to particularly emphasize the commitment of my colleagues who have worked so hard for the success of SVOLT in Europe,”
SVOLT remains strongly committed to Europe
We will take all opportunities to implement positive impulses for the economy and the environment
together with our customers and partners.”
The Überherrn municipal council’s resolution on the articles of association is still awaiting approval from the responsible ministry
This means that the necessary building law and permit has not yet been created
legal action against the construction project has already been announced as soon as the building law has been created
It is therefore currently not possible to predict when final legal certainty will be achieved
legal certainty is an essential prerequisite and therefore the crucial basis for planning how to proceed
It would be pure speculation to provide more precise information on the timeline
as many things are beyond SVOLT Europe’s control and sphere of influence
SVOLT Europe has no other direct obligations in Überherrn
Struktur Holding Saar (SHS) is currently responsible for the Linslerfeld
Expansion of sales focus gives new perspective
In addition to the sale of individualized battery systems for electric cars
SVOLT Europe will now also focus on business areas in which standardized batteries and their systems can be used
which are more easily scalable and quicker to implement
These include batteries for commercial vehicles
stationary energy storage systems and their battery cells (so-called Energy Storage Solutions
or ESS for short) and applications in the non-automotive sector
ensuring greater resilience and helping it become more future proof
While the aim of the sales expansion is diversifying its product portfolio
SVOLT also has the goal of being able to meet the already high demand for high-quality energy storage solutions outside of the passenger car sector in a more agile manner
SVOLT’s strong international network guarantees that projects can be implemented quickly
SVOLT Europe believes it is well positioned to operate optimally in a constantly changing market environment
“Technological innovations continue to be the foundation of our strategy
we have made considerable investments in the research and development of new battery technologies that are suitable for a wide range of applications
we will focus this innovative strength more intensely on business areas from the non-automotive sector,”
Drive batteries for electric cars remain important
SVOLT Europe continues to consider electric car manufacturers target customers
for the distribution of ESS solutions in Europe
“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,”
“This is a decisive step toward becoming more resilient to market fluctuations while also making a significant contribution to the global energy transition
The shifting of our sales focus is therefore an investment in the future
It shows our extensive commitment as a pioneer of technological development to offering innovative solutions that not only make economic sense
but also have a positive impact on our environment.”
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SVOLT Europe responds to current market developments: Expanded sales focus and adjustment of location strategy. source
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Rien Ne Va Plus and Dalou Shan were the winner of the small Bundeschampionate qualifier held in Linslerhof Überherrn on 25 - 26 June 2011
At this competition the German Paralympic Championships took centre stage whereas the young horse classes only featured a limited amount of participants
Corinna Schumacher and the bay Hanoverian mare Rien Ne Va Plus (by Rascalino) were the winners in the 5-year old dressage horse division
trot and submission and 8.5 for general impression
Finnish Terhi Stegars and the liver chestnut Oldenburg are Thai Pee (by Farewell III x Dormello) were second with 7.3
Stegars also took highest honour in the 6-year old division aboard the chestnut Oldenburg stallion Dalou Shan (by De Kooning x Westerland)
The pair scored an overall of 8.0 with 7 for submission
Günter Essig and the Oldenburg gelding Destino (by Donnerbube III x Calido I) were second with 6.7
Back to the 2011 Bundeschampionate Index
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Rémi Blot
After the Chinese battery manufacturer SVOLT declared in September that it would not realise its cell factory in Brandenburg
insiders are now reporting that the planned production of modules and packs in Saarland has also been cancelled
The background to this is said to be a fundamental decision in China
Several people familiar with the matter told the Chinese media company Caixin that SVOLT had decided to suspend the construction of both battery factory projects in Germany
There is no timetable for the resumption of work
The reason given for this is that SVOLT is experiencing financial difficulties in China and cannot afford to operate factories abroad
We have asked SVOLT Europe to comment on the reports
the Frankfurt-based company declined to comment and referred to SVOLT in China
We have also made an enquiry there and will add the statement to the article as soon as we receive a reply
The construction of the cell factory in Saarland had been repeatedly delayed and has not yet begun – according to the original plans, the first battery cells were to be produced in Saarland at the end of 2023. In May 2024, SVOLT then announced that it would also not be realising the planned factory in Brandenburg – it had reassessed its location strategy
it was still confirmed that the company intended to retain module and pack production in Saarland – where cells supplied from other plants were to be processed
While SVOLT had blamed the end of the Lauchhammer project partly on political decisions and discussions (in addition to a cancelled customer project)
the current decision is said to be due to internal reasons
SVOLT made the decision based on its own situation and not on technical or local political factors
said another person familiar with the matter
adding that SVOLT had to “solve the money problem first.” Another source said that the 30 billion yuan (about 3.9 billion euros) investment in the European plants was “too much for a lithium battery manufacturer the size of SVOLT.”
SVOLT Energy is in the highly competitive midfield of the Chinese battery industry
According to figures from the China Automotive Battery Innovation Alliance (CABIA)
the company had an EV battery market share of 2.36 per cent in September 2024
The market is dominated by CATL (44 per cent) and BYD (24.2 per cent)
Only CALB and VW partner Gotion High-Tech have a market share of more than five per cent
Behind them are seven companies with a market share of between one and three per cent
The market prices are set by companies such as CATL and BYD
the other players have to keep up – but cannot hope for the same economies of scale as the market leaders
hopes for a sustainable automotive and supplier industry in the state have vanished into thin air for the time being
caixin.com (in Chinese), cnevpost.com
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
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