CATL is seeking new sites and engaging with European governments as Europe pursues an entirely localized battery supply chain by the end of the decade, though industry groups warn technical, material, and cost gaps will push timelines beyond that target.

Since 2023, investments abroad total nearly $90 billion (about €80 billion), with roughly $12 billion (€10.6 billion) in 2024 across 14 projects, including about $52 billion for cell manufacturing and $38 billion for material production.

This push follows a decade of heavy investment in China that built scale and advanced processes, with gigafactory costs in China about one-third of Europe and production timelines roughly a third of Europe.

Industry experts say approvals from Beijing for overseas investments and technology transfers are a gating factor for production localization.

The outlook suggests Chinese battery makers will maintain a large share of global component production through 2034, even as investment geography broadens.

Gotion announced a partnership with Volkswagen to invest over €1 billion to build batteries in Spain, Slovakia, and Morocco.

At CATL’s German plant, about half of components are European-origin, underscoring ongoing reliance on imports as demand climbs.

Chinese manufacturers such as CATL, BYD, Gotion, Sungrow, and CALB are accelerating overseas production to counter protectionist measures and local-content rules in Western markets.

CALB’s €2.065 billion project in Portugal aims to build a 15 GWh battery plant in Sines, creating about 1,800 direct jobs, with the first phase contracted to Mota-Engil for €207.3 million.

Europe has attracted about $31.5 billion (€28 billion) in investments since 2023, second only to Southeast Asia’s $35.2 billion (€31.3 billion) in batteries and related supply chains.

European automakers’ association cautions that full localization will take longer due to gaps in knowledge, materials, and price competitiveness.