Competition increasing for electric vehicle battery sites in Europe

The Electric vehicle market is progressing rapidly with leading companies jostling for position within the growing industry. Whilst relatively slow to take to the market, companies such as Mercedes, VW and BMW have picked up the pace and have put in a place a series of battery production plans. Tesla, Nissan and GM continue to be leaders in the industry but large-scale battery production will be critical to compete further in the development of long-range electric vehicles.

Image result for nissan leaf electric

Recently, Scania, part of the VW Group has announced its plans to become one of the largest battery cell manufacturers in Europe. The CEO of Scania intends to make the Skelleftea plant a major competitor of the recently developed Tesla Gigafactory in the Nevada desert, with a target of achieving 32GW storage capacity within the next five years.

Whilst VW has made significant plans, it is not the only manufacturer making serious movements in the industry. BMW and Mercedes-Benz have expanded their plans within the electric vehicle market. Last year the CEO of Daimler ruled out any further investment into battery-cell production because supply was exceeding the demand. Just a year later, Volkswagen group have suggested its plans to deliver one of the biggest contracts in its history.


Planned increase in electric vehicle production

With all signs showing rapid market and technology development, major car businesses are suggesting a surge in vehicle sales, implying that the battery market will need to expand quickly to meet this growing demand.

Industry experts have suggested the largest vehicle market in Europe will sell up to 3 million electric vehicles annually by 2025.

Tesla is expecting in excess of 1 million electric vehicle sales worldwide and Nissan in Europe believes that over 20% of its sales will come from electric vehicles.

With most of the leading manufacturers predicting a surge in sales, there is an obvious requirement to find battery sources. Many of the leading electric vehicles are utilising the LG Chem cells. The 2019 Nissan Leaf model is also switching to the LG Chem product. LG Chem has recently announced plans to expand its presence in Europe with a new factory developing in Poland. Another major battery producer is the Samsung SDI. They intend to supply batteries to BMW from their Chinese based factory.


If the predictions of the car manufacturers are to be met, the industry will require a significant boost in battery factory production in years to come.

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