CATL is considering adding more battery gigafactories in Europe

Image: CATL (illustrative)

The Chinese battery giant CATL plans to further expand its production capacity in Europe. European CEO Matt Shen told analysts at fDi Intelligence that the company intends to build additional “gigafactories.” He believes the current capacity is insufficient to meet the structural growth of the European market.

CATL currently has a gigafactory with 14 gigawatt-hours (GWh) of capacity in Germany, as well as a facility with 100 GWh in Hungary whose production is being increased. Additionally, there is a factory with 50 GWh in Spain that is being developed jointly with Stellantis.

"That isn't enough," believes Shen, pointing to the structural growth of the European market as well as the three waves of electrification he predicts: electric cars as the first wave, battery storage as the second wave, and commercial vehicles as the third wave.

Shen did not name specific locations for additional factories, but emphasized the importance of being close to customers and having access to logistics and energy infrastructure. He identified a severe shortage of personnel as the biggest challenge, noting that the European battery industry lacks qualified professionals and engineers. These individuals need to be trained first, which takes time.

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Thomas Langenbucher is an expert in electromobility with professional experience in the automotive and financial industries. Since 2011, he has been covering electric vehicles, sustainable technologies, and mobility solutions for ecomento.de. Learn more.

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