Chinese battery maker, Gotion High Tech Co., is set to revolutionize the European electric vehicle market with its new joint venture with Slovakian peer, InoBat. The two companies signed a memorandum of understanding on Feb. 5, and their joint venture will be able to produce up to 40 gigawatt-hours of battery cells and packs per year. While the exact location of the joint venture has yet to be confirmed, it is believed to be situated in the Central and Eastern Europe region, providing a convenient location for European electric vehicle makers.
In addition to battery production, the two companies are also exploring the potential of building energy storage systems at InoBat’s existing premises in Slovakia. This will help to meet the increasing demand for sustainable energy storage solutions, as well as support the transition towards a low-carbon economy. The energy storage systems will be designed to store energy from renewable sources, such as wind and solar, to be used when demand is high, reducing reliance on traditional fossil fuel sources.
Gotion, which is based in Hefei, China and listed on the Shenzhen Stock Exchange, has a long-standing relationship with the automotive industry. Volkswagen Group, one of the world’s largest automakers, owns 26% of Gotion, and in 2021, Gotion signed a deal to produce battery cells for the German auto giant in both China and Germany. Furthermore, Gotion’s US subsidiary signed a strategic cooperation agreement with a large, US-listed auto manufacturer for the supply of lithium iron phosphate batteries. This demonstrates the company’s commitment to expanding its reach globally and establishing itself as a leading player in the electric vehicle market.
The joint venture between Gotion and InoBat is a clear indication of the growing demand for electric vehicles, and the companies’ commitment to providing sustainable energy solutions. With this joint venture, the two companies will bring their expertise and experience together to provide the European market with high-quality, reliable and sustainable battery solutions. The move is sure to have a significant impact on the electric vehicle market, and it will be interesting to see how it develops in the coming years.
The batteries for the automaker will come from a combination of exports from China and a brand new plant set to be built in the United States, according to sources. However, the company has remained tight-lipped about the progress of this deal.
Fast forward to 2022 and Gotion was able to ship a whopping 14.1 GWh of batteries worldwide, a significant increase of 112% from the previous year, as reported by SNE Research, a leading Korean consultancy firm.