For Chinese power battery manufacturing enterprises, investing and building factories in the hinterland of Europe is becoming increasingly fashionable, and it is also a symbol of strength. Up to now, the battery capacity layout of three enterprises in Europe, namely Ningde era, Funeng technology and honeycomb Energy, has exceeded 130GWh, its volume is about twice the total installed capacity of power batteries in China.

Among them, Ningde era was the first Chinese battery enterprise to build a factory in Europe. Its battery factory in Germany officially started a year ago, with an investment amount of nearly 1.8 billion euros (about 14.2 billion yuan), it is planned to achieve 14GWh capacity by 2022 and 100GWh capacity by 2026.

Very QALEDE, the European factories of Funeng technology and honeycomb energy are also located in Germany. The investment amount of vouneng technology is about 0.6 billion euros (about 4.8 billion yuan), and it is planned to be completed and put into operation by the end of 2022, with a planned production capacity of 10GWh. Honeycomb Energy will invest 2 billion euros (about 15.5 billion yuan), and it plans to produce 300000-500000 electric vehicle batteries annually, which will be completed and put into operation in 2023, with an annual production capacity of 24GWh.

In fact, there are far more Chinese battery manufacturers planning to build factories in Europe than the above. It is reported that vision AESC is planning to build a super battery factory in Europe, and it is said that it may be located near Nissan Sunderland factory. In addition, it is said that BYD also plans to build its first battery factory in Europe in Britain.

At present, the European new energy automobile industry is developing rapidly. In the first three quarters of 2020, the sales volume of new energy vehicles in Europe reached 880000, a year-on-year increase of 195 percent. And the sales volume in the fourth quarter is still booming, and it is expected to surpass China to become the world's largest new energy vehicle market. According to PwC's prediction, the sales proportion of new energy vehicles in the European market will reach 67% by 2035.

Under this situation, the strong market demand has led to a plus-sized gap in European power battery capacity. Volkswagen predicts that its company will need 150 GWh power batteries in Europe alone by 2025, and the French government also predicts that the demand of local car companies for power batteries will reach 170G in 2030.Wh. According to SNE, a market research company, the demand for electric vehicle batteries in Europe is expected to be 406GWh by 2023, while the supply is expected to be 335GWh, with a shortage of about 18%; by 2025, the supply shortage expanded to about 40%.