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Exclusive: EV-Battery Maker SVOLT Hits Brakes on Overseas Expansion in Germany

Published: Oct. 24, 2024 8:20 p.m. GMT+8

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SVOLT Energy Technology's headquarters in Changzhou, Jiangsu province. Photo: SVOLT

Chinese battery-maker SVOLT Energy Technology Co. Ltd. has decided to suspend construction on its two plants in Germany as the cost of the projects has become too great for the cash-strapped company, sources told Caixin.

The setback to its overseas expansion comes as SVOLT has been slimming down in a wide-reaching restructuring that its CEO revealed in earlier this year in reaction to overcapacity and a price war at home.

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SVOLT Energy Technology is suspending construction of two German plants due to high costs, requiring an initial investment of 30 billion yuan.
The company is undergoing restructuring due to challenges like overcapacity and a price war in its domestic market, while experiencing tight cash flow and not proceeding with a planned IPO.
SVOLT's overseas production plans are at risk, compounded by Great Wall Motor's strategic shift away from the EU, affecting its major customer relationship.

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