After the Chinese manufacturers of electric cars seriously set out to conquer the European market, another company is expanding its operations in Europe. In cooperation with the Slovakian startup Inobat, the Chinese Gotion is building a battery factory that will start operating in 2026.

The executive director of Inobat, Marian Bocek, said that the construction of the plant will start next year and will last for two years. The start of battery production is expected in 2026, from when a gradual increase in production can also be expected. Gotion and Inobat are currently looking for a location for the factory, and several European countries are among the options.

VW, which is the largest shareholder of Gotion, will benefit the most from this project. VW has an exclusive contract with Gotion to supply EV batteries outside of China. Gotion is also building a $2.36 billion battery plant in Michigan and a $2 billion plant in Illinois.

Europe’s efforts to build its own electric vehicle battery industry and reduce reliance on dominant Asian battery manufacturers are obvious and reasonable. Last month, Swedish lithium-ion battery maker Northvolt – whose customers include VW and Volvo – told Reuters it had raised $1.2 billion from investors. At the same time, French battery startup Verkor announced that it has secured more than 2 billion euros in funding for the construction of a gigafactory in Dunkirk.

Source: Reuters