13:28 02-10-2025

CATL’s flexible partnerships could reshape Europe’s battery supply chain

China’s CATL, the world’s leading battery maker, signaled it is ready to work more closely with European companies to strengthen the region’s battery industry. Matt Shen, who heads the group’s European division, said Europe is grappling with high costs, a shortage of skilled labor and supply chain issues—challenges that, in his view, call for strategic alliances. The diagnosis sounds familiar across the sector and reads more like a pragmatic roadmap than corporate rhetoric.

CATL already operates plants in Germany and Hungary and is building a gigafactory in Spain with Stellantis. The company also says it is open to forming joint ventures with other players, including ACC, the consortium created by Mercedes-Benz, Stellantis and Saft.

Europe’s position has been complicated by the collapse of Northvolt, which was recently acquired by U.S. startup Lyten—an obvious setback for the European Commission’s ambition to build an autonomous battery industry. For now, the continent remains reliant on Chinese and South Korean technologies from the likes of BYD, LG, Samsung and SK On, and that dependence keeps timelines and pricing tied to decisions made far from EU soil.

Against this backdrop, Brussels is discussing whether to require Chinese companies to transfer technology in exchange for access to subsidies. Beijing opposes the idea. CATL, by contrast, strikes a more flexible tone, saying it is willing to share know-how and create joint structures while retaining control over its core technologies.

CATL’s openness could offer Europe a way to stay competitive. The real test is whether the region can stitch together a resilient supply chain of its own—or whether it will continue to lean on Asian heavyweights. In the end, progress will hinge on execution, disciplined investment and the willingness to partner where it counts.