Chinese Batteries: Welcome Here and Here

Gotion, AESC, CATL, Svolt, BYD, Eve Energy, Tesla, BMW, Volt, Bolt

Sep 12, 2023

Chinese Batteries: Welcome Here and Here

Chinese battery manufacturers are investing billions of dollars into new plants across the United States and Europe.

Western automakers need the batteries – especially the lower-cost LFP variety. And Chinese battery makers, soaking in overcapacity at home, want to enter global markets.

> Who are the companies?

> How much are they investing?

> How soon will they start?

Here is a look at some of the larger projects:

Illinois/Gotion. Anhui-based Gotion announced plans to invest $2 billion dollars in Manteno, Illinois to supply energy storage systems and electric vehicles.

Michigan/CATL. Ford has approved $3.5 billion to build a battery plant in Michigan that will source battery technology from CATL, the world’s largest battery maker.

Michigan/ Gotion. Gotion announced plans to pour $2.4 billion into a new battery plant in Western Michigan.

Kentucky & South Carolina /AESC. This Chinese majority-owned company (originally started by Nissan) is investing $800 million into Florence Country, South Carolina to supply BMW. AESC earlier announced a $2.2 billion dollar outlay to build a new battery facility in Bowling Green, Kentucky.

EVE Energy, Daimler, Cummins and PACCAR will form a 4-way joint venture in Michigan with Shenzhen-based EVE energy to supply heavy duty electric trucks in the United States. EVE already supplies LFP cells to Daimler Truck, Tesla and BYD in China.

…And Across Europe.

Chinese battery makers have invested $17.5 billion into new plants in Europe over the past five years. CATL, Svolt, CALB and AESC are building multiple plants in Hungary, Germany, the UK and Sweden.

So What, Now What?

Today, Western automakers can secure LFP battery technology from any country in the world – provided that the country is named China.

For decades, Chinese automakers played the game forever catch-up on internal combustion engines. Now, American and European automakers are the underdogs.

The West will need to innovate, build out supply chains and scale quickly to compete with its new Chinese neighbors. “We can get there on LFP, but it will be hard - especially the supply chains,” one European battery executive told me this week.

China’s home away from home. (Source The China Project).

Future EVs, Batteries, Charging

Electrics

BMW Mini Electric Built in the UK. BMW is investing $750 million to build all-electric Minis in the United Kingdom. Link

Batteries

The Battery Show - Novi, Michigan. If you are curious to learn about the future of batteries, this is the show to attend. The event brings together hundreds of battery manufacturers, EV makers and industry experts. Link

Charging

Tesla Superchargers. Tesla added a stunning 312 Supercharger stations in Q2 2023, taking the nationwide total to more than 5,000. Yes, but how many individual stalls are there? That would be 48,000. Link

Even a Tesla Supercharger at Niagara Falls.

New Developments / Milestones

US EV Market. Key numbers through 1H 2023:

• Tesla Market Share: 60%

• EV Share Penetration: 7%

• Forecast for FY 2023: 1.1 million

Detroit This Week. Hope to see you in Detroit the week. There will be the Battery Show, the Detroit Auto Show, the Automotive News World Congress and possibly the UAW on strike. I will also be getting together with the crew at Assembly Ventures.

China 37. EV penetration in China reached 37% in August – an all-time high.