Battery manufacturer Svolt will not be building a factory in Lusatia after all

Lusatia is fervently hoping for a replacement for lignite mining. Now battery manufacturer Svolt is withdrawing its commitment due to sales concerns.

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SVOLT Batterie im Auto

(Image: Svolt)

3 min. read
This article was originally published in German and has been automatically translated.

The Chinese battery manufacturer Svolt will not be setting up battery production for electric cars at the Lauchhammer site in Brandenburg as planned. "The automotive market is currently struggling with considerable fluctuations and challenges all over the world, mainly driven by the transformation to electromobility," says Kai-Uwe Wollenhaupt, Head of Europe at Svolt, explaining the reason for the withdrawal from Lusatia and calling the move a stabilization measure. The company wants to "take account of the volatile market situation and remain competitive". As Svolt announced in September 2022, the battery plant was to be built on the site in Lauchhammer, where Vestas previously assembled wind turbines.

In addition to specialized battery systems for electric cars, Svolt now wants to focus more on standardized batteries and their systems because they are easier to scale and production can be implemented more quickly. The company writes that "this includes traction batteries for commercial vehicles, stationary energy storage systems and their battery cells [so-called Energy Storage Solutions, ESS for short] and applications in the non-automotive sector".

Nevertheless, Svolt intends to hand over the site in Heusweiler, Saarland, which is currently under construction, completely turnkey as planned on July 1, 2024. However, another planned location in Saarland is still up for discussion.

Minister of Economic Affairs Jörg Steinbach (SPD) regrets Svolt's decision to withdraw from the site in Lauchhammer. It is "an entrepreneurial decision that we as a state must respect." A replacement for Svolt would certainly not be found immediately, but "the attractiveness of the location speaks for itself". The minister has an emerging so-called mobility cluster in mind that could emerge in the region.

Another potential player for this new industrial settlement is the Canadian-German company Rock Tech, which plans to produce 24,000  tons of lithium hydroxide for electric car batteries and stationary storage in Guben every year with the help of Europe's first lithium hydroxide converter. After 200 million euros from a federal funding program could not be released due to the tight budget, Brandenburg has pledged financial support. The total cost of the converter is around 800 million euros.

The electric car manufacturer Tesla is continuing to work on its plans to expand the car plant in Grünheide, Brandenburg, despite headwinds from activists.

(fpi)