The Contemporary Amperex Technology Co., Limited (CATL) plant in Erfurt is its first overseas plant that started its operation. While the competition is supposed to be strengthened further between the world’s largest and Korean EV battery makers. Notably, the plant located in Germany has a yearly manufacturing capacity of 14 GWh, equivalent to 280,000 cars.
In addition, CATL’s products for Mercedes Benz and BMW will be transferred from the plant. On the other hand, they plan to open their second overseas plant (100 GWh) in Hungary by 2027 in order to supply Mercedes Benz, BMW, Volkswagon, and Stellantis. As these are the big clients for South Korean companies. And the list includes LG Energy Solution, SK On, and Samsung SDI.
As per the global consulting firm Kearney. It is being said that the global share of North America and Europe in terms of EV battery production was 2 percent in 202. While it is predicted to reach 18 percent in 2026. And China’s expected to increase between 54 to 58 percent during that period. It is also said that the ratio of production in South Korea and Japan would fall from 44 percent to 24 percent respectively. It indicates the probability of more investment, which is yet to come in North America and Europe.
“The three South Korean companies are expected to retain their leading position in North America but the same cannot be guaranteed when it comes to the European market,” said an expert.