What is the reason behind Chinese power battery companies going overseas collectively?

On August 12, CATL announced that the company planned to invest in the construction of the Hungarian times new energy battery industry base project in Debrecen, Hungary, with a total investment of no more than 7.34 billion euros (about 50.9 billion yuan). The construction content is a 100GWh power battery system production line, which will be started in 2022.

With the enhancement of the competitiveness of Chinese power battery enterprises, enterprises represented by CATL,CALB, SVOLT, Gotion Hi-Tech, and Envision AESC have joined the "hunting" team in the European market.

What is the charm of the European power battery market? Let the power battery giants be fascinated by it.

Behind the active deployment of overseas factories by power battery companies is the rapid increase in demand in overseas markets such as Europe. Many companies intend to compete for orders from international car companies by building local factories.

On the one hand, Europe and China are currently the two largest new energy vehicle markets in the world.

Statistics from the European Automobile Manufacturers Association (ACEA) show that in the first half of this year, the sales of new energy passenger vehicles in Europe were 1.12 million, an increase of 8.7% year-on-year. Although production is limited due to chip shortages, the growth rate is not as fast as in China, but considering the 13.7% decline in the overall European auto market during the same period, this result is quite good.

In addition, the EU has decided to ban the sale of fuel vehicles in 2035, which will play a great role in promoting the development of new energy vehicles, and the prospects are promising.

On the other hand, the overseas factories of Chinese battery companies are actually built to meet the needs of OEM customers.

CATL's first European factory was located in Thuringia, Germany, mainly for supporting BMW.

The second battery factory is located in the southern industrial park of Debrecen, a city in eastern Hungary, close to the OEMs of Mercedes-Benz, BMW, Stellantis, Volkswagen, and other customers. It will produce battery cells and module products for European automakers. Mercedes-Benz will be the first and largest customer for the new plant at the initial capacity scale.

Envision AESC built a plant in the UK mainly to support Nissan's Sunderland plant in the UK while building a plant in France was due to a large order from Renault.

With the advancement of the globalization strategy, the overseas layout of Chinese power battery companies may be accelerated again, and it is believed that it will also bring new opportunities to the product packaging industry. As a logistics packaging manufacturer specializing in the production of plastic pallets, plastic pallet boxes, plastic sleeve pack containers, and trash cans, HuaDing is looking forward to a broader market.