Driven by the wave of carbon neutrality and vehicle electrification, Europe, a traditional powerhouse in the automotive industry, has become the preferred destination for Chinese power battery companies to go overseas due to the rapid growth of new energy vehicles and strong demand for power batteries. According to public data from SNE Research, starting from the fourth quarter of 2022, European electric vehicle sales have surged and reached a historical high. By the first half of 2023, 31 European countries have registered 1.419 million new energy passenger vehicles, a year-on-year increase of 26.8%, and the penetration rate of new energy vehicles is 21.5%. In addition to the Nordic countries with already high electric vehicle penetration rates, major European countries represented by Germany, France, and the United Kingdom have also experienced a surge in market sales.
However, it is worth noting that behind the rapid growth of the European new energy vehicle market is the contrast between the strong market demand for power battery products and the lagging development of the European power battery industry. The development of the European power battery market is calling for “game-breakers” .
The concept of green environmental protection is deeply rooted in the hearts of the people, and Europe’s new energy vehicles are developing rapidly.
Since 2020, new energy vehicles that focus on green and environmental protection concepts have experienced explosive development in the European market. Especially in Q4 last year, European electric vehicle sales surged and reached a historical high.
The rapid growth in sales of new energy vehicles has brought about a large demand for power batteries, but the lagging European power battery industry is difficult to meet this demand. The main reason why the European power battery industry lags behind is that the technology of fuel vehicles is too mature. Traditional car companies have eaten up all the dividends in the fossil fuel era. The thinking inertia formed is difficult to change for a while, and there is no motivation and determination to transform at the first time.
How to solve the problem of lack of power batteries in Europe?
In the future, how to break the situation? The one who breaks the situation will definitely have the Ningde era. CATL is the world’s leading power battery manufacturer and is in a leading position in technology research and development, manufacturing, zero-carbon transformation, and localized development.
In terms of technology research and development, as of June 30, 2023, CATL owned and was applying for a total of 22,039 domestic and foreign patents. As early as 2014, Ningde Times established a wholly-owned subsidiary in Germany, German Times, to integrate local high-quality resources to jointly promote the research and development of power battery technology. In 2018, the Erfurt R&D center was built again in Germany to drive the innovation and development of local power battery technology.
In terms of production and manufacturing, CATL continues to hone its extreme manufacturing capabilities and holds the only two lighthouse factories in the battery industry. According to official data from CATL, the failure rate of power batteries has also reached the PPB level, which is only one part per billion. Strong extreme manufacturing capabilities can provide stable and high-quality battery supply for new energy vehicle production in Europe. At the same time, CATL has successively built local chemical plants in Germany and Hungary to better meet the development needs of local new energy vehicles and help Europe’s comprehensive electrification process and local new energy vehicle companies go overseas.
In terms of zero-carbon transformation, CATL officially released its “zero-carbon strategy” in April this year, announcing that it would achieve carbon neutrality in core operations by 2025 and carbon neutrality in the value chain by 2035. Currently, CATL has two wholly-owned and one joint venture zero-carbon battery factories. Last year, more than 400 energy-saving projects were promoted, with a cumulative carbon reduction of 450,000 tons, and the proportion of green electricity usage increased to 26.60%. It can be said that in terms of zero-carbon transformation, CATL is already at the global leading level in terms of strategic goals and practical experience.
At the same time, in the European market, CATL also provides customers with long-term, localized after-sales service guarantees through the construction of localized channels with high-quality products, excellent operations and excellent services, which has also further stimulated the development of the local economy.
According to SNE Research data, in the first half of 2023, the world’s newly registered power battery installed capacity was 304.3GWh, a year-on-year increase of 50.1%; while CATL accounted for 36.8% of the global market share with a year-on-year growth rate of 56.2%, becoming the world’s only Battery manufacturers with such a high market share continue to maintain their leading position in the global battery usage rankings. It is believed that driven by the strong demand for power batteries in the European new energy vehicle market, CATL’s overseas business will see substantial growth in the future.
Post time: Sep-20-2023
