This strategic move is tailored to ensure seamless battery trade relations between China and the EU. It's pivotal to note China's overwhelming presence in the battery production landscape, holding a staggering 77% of the global market share.
Total Chinese investment in Europe has dropped sharply in the last decade, but battery plants have been a bright spot. Instead of acquiring existing European companies, which can attract more regulatory scrutiny, large Chinese firms like CATL have built new facilities, often with the help of local government funds.
Furthermore, China's power battery market share in Europe has seen a meteoric rise-from 14.9% in 2020 to an impressive 34% in 2023. The EU's transition towards more stringent battery regulations is a testament to its unwavering commitment to sustainability, responsible sourcing, and championing a circular economy in the battery sector.
In Germany, EV battery company CATL is reducing its Chinese headcount, straying from Mandarin as the lingua franca, and expanding cultural trainings, officials told Semafor.
Chinese EV startups Nio, Xpeng and Leapmotor are using CALB batteries, as are established Chinese marques Changan, Geely and GAC Aion. By the fourth quarter of this year, Dai said, CALB semi-solid batteries are to be installed in some models of a foreign luxury brand.
These new guidelines introduce significant changes poised to impact battery producers across the globe, with companies in China and Taiwan being at the forefront of these challenges. Key Highlights of the New Regulations: Beginning in 2027, any power batteries destined for European markets will mandatorily require a "Battery Passport."
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