CATL's European factory settled in Germany and received a 31 billion yuan battery order from BMW

On the afternoon of July 9, German time, witnessed by Chinese Premier Li Keqiang and German Chancellor Angela Merkel, Contemporary Amperex Technology Co., Ltd. and the government of the German state of Thuringia signed an investment agreement. According to the agreement, CATL will invest 240 million euros (about 1.87 billion yuan) to establish a battery production base and intelligent construction technology research and development center in Erfurt, Thuringia, Federal Republic of Germany. CATL's Thuringia battery production base is mainly engaged in the research and development and production of lithium-ion batteries. It will be divided into two phases and is scheduled to be put into production in 2021. After reaching full production in 2022, it will form a production capacity of 14Gwh.

Zeng Yuqun, Chairman of CATL, said: "For our first investment in Europe, we chose Germany. We hope to bring the world's most advanced power battery technology to Germany. By establishing localized power battery supply capabilities in Europe, we can get closer to European customers, provide more timely and effective product solutions, and respond to customer needs better and faster."

Wolfgang Tiefensee, Minister of Economic Affairs of Thuringia, praised CATL: "We are very pleased that a global leader in the lithium-ion battery industry like CATL has settled in Thuringia. CATL's investment is one of the most important investments in Thuringia in the past decade, and it is of far-reaching significance to CATL, Thuringia, and the European new energy vehicle industry."

At the same time, foreign media reported that BMW Purchasing Director Markus Duesmann said on July 9 local time that BMW has signed a battery procurement contract with Contemporary Amperex Technology Co., Ltd. (CATL), and BMW will purchase batteries worth US$4.7 billion (about RMB 31.07 billion) from CATL. According to Markus Duesmann, the US$4.7 billion procurement contract is divided into two major orders, of which about US$1.76 billion of orders come from CATL's new Erfurt plant in Germany, and the rest comes from CATL's Chinese plant. Duesmann said that BMW has invested part of the cost of CATL's Erfurt plant, but has not yet disclosed the specific funds.

Duesmann pointed out that BMW is investing in battery research, but has not yet made a decision to produce batteries, but does not rule out the possibility of producing batteries. Duesmann also added that BMW is currently working with two battery suppliers and may add a third supplier in the future. It is currently negotiating with eight battery manufacturers.

However, BMW has no plans to jointly buy batteries with rival Daimler, as it would gain a competitive advantage if the batteries offered a longer range or charged faster, Duesmann said. Daimler said its strategy is to buy components where they are produced. "We welcome CATL's decision to produce in Germany and are in talks on the matter," a spokesman said.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.