As the startup ramps up manufacturing of electric vehicle batteries, Chinese battery manufacturer Gotion High Tech (002074.SZ) is purchasing a 25% interest in Slovak battery manufacturer Inobat and will provide supply chain and technology support, the firms announced on Thursday.
The terms of the investment and what they signify for Inobat’s worth were not disclosed by the firms.
The move by Gotion, which is partially owned by Volkswagen (VOWG_p.DE), is the first investment by a Chinese battery manufacturer in a European startup and comes after the two businesses stated earlier this year that they would look into joint venture prospects to create batteries for electric vehicles and energy storage.
According to Inobat, the investment will provide it access to Gotion’s R&D, as well as the raw materials, including lithium, and the Chinese battery manufacturer’s cell production and recycling capabilities. The path to mass production for the Slovak startup will be sped up by this.
Gotion CEO Li Zhen stated in a statement, “Through our combined efforts, we want to develop and produce batteries that will make their way into countless families across Europe.
Few firms have attracted continuing investment in Europe’s efforts to develop its own EV battery industry and lessen reliance on leading Asian battery makers as funding for startups has dried up due to high-interest rates and economic uncertainties.
As it prepares to establish new factories in Europe and North America, Swedish lithium-ion battery manufacturer Northvolt, whose clients include Volkswagen and Volvo Cars, told Reuters last week that it had secured $1.2 billion from investors including BlackRock and a number of Canadian pension plans.
Others have struggled, such as Britishvolt, a UK firm that folded earlier last year.
Gotion announced last year that, in order to fulfill the rising demand from EV manufacturers and energy storage clients, it will locate one-third of its production capacity outside of China by 2025.
The Chinese battery manufacturer is investing up to $6.3 billion in the construction of an EV battery plant in Morocco in addition to a $2.36 billion facility being built in Michigan.
Although these agreements are not yet binding, Inobat has signed declarations of intent to establish EV battery factories with the governments of Spain and Serbia.
