CONTEMPORARY Amperex Technology Ltd. (CATL) will build a battery cell factory in the German state of Thuringia to supply European carmakers, sources said Friday. An official signing ceremony will take place at a summit in Berlin with China’s Premier Li Keqiang on July 9, two of the sources said. CATL will produce lithium-ion cells at the plant for use by German carmakers in battery packs for electric cars. “The location of Thuringia... is correct,” the third source said. Global and German automakers are bolstering their electric vehicle capabilities and China, the world’s largest car market, has emerged as a leading player due to a government push to encourage zero-emission vehicles. German carmakers, shaken by a diesel-emissions cheating scandal last year, are also pouring cash into electric vehicles and have grown reliant on a raft of Asian suppliers as they raise production. CATL is China’s dominant battery maker. BMW rival Volkswagen (VW) recently picked CATL and South Korea’s Samsung and LG Chem to deliver US$25 billion worth of batteries. This month, Tesla’s chief executive said he favors Germany as the location for the U.S. carmaker’s first European battery factory. BMW confirmed Thursday that the carmaker had awarded a contract worth just more than 1 billion euros (US$1.16 billion) to CATL so the Chinese battery maker can build a factory to make cells for electric cars in Europe. Thuringia’s Economy Ministry on Friday said it was negotiating with CATL about locating production in the state. (SD-Agencies) |