ELBC 2022: THE CHINA PERSPECTIVE Despite the EU’s oft-stated goal of building a battery cells manufacturing network to challenge Asia’s dominance, a senior Beijing envoy to Germany tells Batteries International, China is happy to play a key supporting role in shaping Europe’s batteries future.
How China’s battery tigers are helping Europe’s nascent battery industry roar Many of the draft rules soon to become EU law under the Batteries Regulation are part of an undisguised effort on the part of the bloc’s leaders to dethrone Asia from its dominance in the batteries market. Measures imposing tough ‘green criteria’ seeking to make European battery products an international standard and setting carbon emission limits on production are part of the arsenal of policies the bloc has crafted, in an attempt to allow Europe’s own gigarevolution to pick up speed and so challenge dominance from battery makers in countries such as China and South Korea. But while the policy-making rumbled on, Asia’s battery tigers prowled into town. The ‘competitors’ are no
longer across the other side of the world — they’re busy at work in EU member states. And in exclusive interview with Batteries International, the commercial counsellor at China’s embassy in Berlin, Wang Weidong, says his nation is happy to be supporting Europe’s green energy agenda. As far as the Batteries Regulation is concerned, Wang says Chinese battery companies believe the new rules will have a positive impact in “promoting green, low-carbon and sustainable development” of the battery industry and tackling climate change. Key players in China’s battery industry are among others, such as South Korea, who have been busy setting up shop in the EU — in partnership with
“It is conceivable that Sino-European exchanges in the methodology of battery products will be undertaken and a cooperation mechanism will be established … “This should facilitate mutual market access, create a win-win situation and make constructive progress towards global climate protection” — Wang Weidong 24 • Batteries International • ELBC 2022 Show Guide • Summer 2022
European peers — and in some cases benefiting from generous EU financial incentives. Wang says data from the federal government-backed Germany Trade and Invest (GTAI) shows that around 5,700 Chinese firms across a variety of sectors were active in Germany in 2021, which in turn employed a total of more than 103,000. And despite what Wang said were difficult economic conditions, GTAI data on foreign direct investment for Germany in 2020 indicated some 170 greenfield investment projects from China — a 10% increase over the previous year. Those investors include Chinese battery manufacturing majors Contemporary Amperex Technology (CATL) and SVOLT Energy Technology. “They specialize in electromobility and are building battery manufacturing factories in Germany,” Wang says. Meanwhile another Chinese battery titan, Narada Power, ploughs ahead with its range of projects in support of strengthening Germany’s power grid. Wang says all three companies “are examples of China’s integration into the world economy and the result of the globalization of the (batteries) value chain. “With China’s opening-up process and economic growth, Chinese companies are increasingly expanding their global presence,” he says. “Decisions to enter the German and European markets are made by Chinese investors based on business interests, just like German companies in China.” And now that Chinese battery companies and others have become interwoven into the commercial fabric of Europe’s industrial landscape, Wang hopes Chinese companies “will be offered fair competitive conditions here and that they can be treated equally with local companies”.
www.batteriesinternational.com
