Chinese Presence in Europe’s Electric Vehicle and Battery Factories

The Growing Influence of China in the European Automotive Market

Not only electric cars are exported from China to be sold in European markets.
The Dragon’s footprint in the automotive industry of the Old Continent is also visible through two other signals that complete an emblematic picture, showcasing all the potential of the Asian giant.

On one hand, we have several EV factories located in Europe, with projects in different stages of development, from those under construction to others that have been only announced, from which vehicles will come out as “Made in EU” rather than “Made in China”.
On the other hand, we find Chinese facilities dedicated to the production of electric batteries, which are the heart of the new generation vehicles.

Connecting these three points, the Golden Triangle of China takes shape: EV factories, electric cars, and batteries.
However, the context for the Asian giant is not entirely rosy.
While some Chinese car manufacturers are trying to establish production and assembly plants in Europe to increase sales of low-cost cars in the region and compete with local competitors in a slowing domestic demand scenario, Brussels is also shedding light on the moves of the Chinese government.

European imports of EVs manufactured in China have dramatically increased in recent years, raising concerns about the possibility that traditional regional electric vehicle players could be overwhelmed by a wave of low-cost Chinese products.

### China’s Presence in Europe in the Automotive Sector

Pending to understand if, when, and how the European Union will react to China’s growing entrepreneurial ventures, it is worth taking a look at the map of the main investments made by Beijing in the heart of the Old Continent.

Chery Auto, the largest Chinese car manufacturer in terms of export volume, announced on April 16th, a partnership with the Spanish EV Motors to open its first European production site in Catalonia, in Barcelona.
Production is set to begin by the end of the year, with the junior partner Chery producing its Omoda vehicles within the plant.

On the other hand, BYD, the world’s largest electric vehicle manufacturer, announced at the end of 2023 that it will build its first European production base for electric vehicles in Hungary, in Szeged.
The plant will manufacture electric and plug-in hybrid vehicles for the European market and is expected to start operating between late 2025 and 2026.

### Multiplying Factories

Leapmotor, as reported by Reuters, is expected to start producing small EVs at the Stellantis plant in Tychy, Poland.
Also in Poland, Geely is set to produce the first Polish EV in Jaworzno, in collaboration with the local manufacturer EMP.
Nio’s eyes are on Biatorbagy, also in Hungary.

On the battery front, in 2023, Chinese actors announced investments of over $10.9 billion in Hungarian factories.
In August of last year, the world’s leading battery manufacturer, Contemporary Amperex Technology Co.
Limited (CATL), unveiled a €7.34 billion investment to build a battery plant in eastern Hungary, in addition to one in Erfurt, Germany.

Eve Energy, Huayou Cobalt, BYD, and Ningbo Zhenyu Technology have followed suit.
Further investments could materialize in the coming months, depending on the EU investigation and international tensions.

### Conclusion

The collaboration between China and Europe in the automotive sector is continuously evolving, with Chinese investments in European production facilities and battery plants reshaping the industry.
As the competition intensifies, it remains to be seen how the European Union will respond to the increasing presence of Chinese automotive companies in its markets.