Chinese battery manufacturer Svolt Energy has suspended its two battery factory projects in Germany, according to a news report published by CnEVPost on Oct. 25. The report cited local media outlet Caixin as the original source of the story. The report, which cited several unnamed people aware of the development, said that Svolt Energy has not set any timeline for resuming operations at its battery factories.
It is known that Svolt Energy had planned to build two factories in Germany, including a battery module and pack plant in Saarland, and a cell manufacturing facility in Brandenburg.
The Saarland-based battery pack project was first announced in November 2020 and was originally slated for completion by mid-2024. It was supposed to have a capacity of 24 GWh and was to be built with a total investment of €2 billion.
Meanwhile, the Brandenburg-based, battery-cell manufacturing plant, which was announced in September 2022, was slated to have an annual capacity of 16 GWh. This facility was expected to become operational in 2025. However, the ongoing construction of both the plants is now suspended, the report said, attributing the move to Svolt’s struggling operations in its domestic market in mainland China.
Citing an unnamed source aware of the matter, the report mentioned that the two upcoming battery plants in Germany will require an investment of 30 billion yuan (about $4.2 billion) to be completed.
The report pointed out that the battery prices in Greater China have recorded a sharp decline over the past two years as growth in the new-energy vehicle (NEV) segment has slowed, and raw material prices have fallen.
