The financial collapse of Northvolt has undoubtedly left a mark on Europe's electric vehicle (EV) battery ambitions. However, the continent's aspiration to advance its EV battery industry remains resilient, though increasingly intertwined with Chinese participation.
Northvolt's downfall has shown the vulnerability of Europe's battery projects, with several companies shelving or deferring plans as a result. The industry has now shifted focus towards partnerships with established Chinese battery makers, exemplified by the joint venture deals between Gotion-InoBat Batteries (GIB) and Stellantis-CATL.
InoBat, a Slovakian start-up, has successfully attracted Chinese investment, marking a significant development in the European battery market. Gotion High-Tech, China's fifth-largest battery producer, invested in InoBat with a 25% stake. This investment contributed to InoBat raising over 400 million euros, including a 100 million euro Series C funding round.
Chinese companies like Gotion have significantly contributed to increasing Europe's EV battery capacity. Gotion, which had an annual battery capacity of 150 gigawatt-hours (GWh) in 2023, aims to boost this to 270 GWh by 2025. Such ambitious goals have made Chinese firms attractive partners for European ventures seeking scale and expertise in battery production.
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Several promising projects outline Europe's future in battery production despite facing significant hurdles. France's Verkor, backed by Renault, plans a 16 GWh gigafactory in Dunkirk, slated for 2028. Additionally, UK's Ilika is working on providing test battery cells with a timeline to reach the market by 2025, while also seeking licensing arrangements for large-scale output.
InoBat remains on course to build a 4 GWh gigafactory in Voderady, Slovakia. This facility will focus on low-volume but high-margin production, aligning with InoBat's strategic plans to partner with major automotive clients. Furthermore, GIB’s planned $1.2 billion 20 GWh gigafactory in Surany aims to supply Volkswagen from 2027.
While Europe's independent battery production ambitions may be faltering, the infusion of Chinese investment and expertise provides a potential new lifeline. The future of European EV battery projects appears reliant on these strategic partnerships to overcome previous setbacks and thrive in the burgeoning global market.
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