Svolt Energy, a Chinese battery manufacturer spun off from Great Wall Motor, has confirmed it will end its operations in Europe. This decision follows reports of suspended battery factory projects in Germany. The company announced that its commercial activities in Europe and its German subsidiary will cease on January 31, 2025.
The closure is attributed to the poor performance of the European electric vehicle market to meet the expectations of all stakeholders involved. Despite prior investments in the region, Svolt acknowledged that external factors hindered progress.
Moving forward, Svolt plans to restructure its European presence to focus on technical and engineering services, warehousing, logistics, and after-sales support. The company remains committed to identifying sustainable business opportunities in Europe and will communicate directly with existing customers.
Svolt initially aimed to establish two manufacturing facilities in Germany—a battery module and pack plant in Saarland, and a battery cell plant in Brandenburg. The pack facility, announced in November 2020, was projected to have a capacity of 24 GWh with a €2 billion investment, while the cell plant was set for production in 2025 with an expected annual capacity of 16 GWh.
Local reports suggest that financial challenges, particularly in Svolt’s home market of China, contributed to the suspension of these projects. The significant capital investment required for the European plants was deemed unmanageable for Svolt at this time.
Since becoming independent from Great Wall Motor in 2018, Svolt has emerged as a significant player in the battery industry, ranking eighth in China’s domestic power battery market. However, plans for an IPO on China’s STAR market were halted last December, reflecting ongoing financial challenges.
This decision follows the earlier closure of Great Wall Motor’s German office, indicating a broader strategic shift for the company in international markets.
Source: CNEVPOST
