Chinese carmakers set up EV plant in Europe, Italy

A joint venture in between Dongfeng Motor, China’s second-largest automaker, and battery and EV maker Contemporary Amperex Technology (CAT) will be based in Changshu, Jiangsu province.

In December 2018, the companies told reporters that they plan to produce battery systems, batteries and EVs in the joint venture. CMC could be one of the largest overseas suppliers of battery systems, and it is anticipated that the Changshu facility will be an R&D centre for both domestic and global markets.

The battery manufacturing in Changshu is the first step in the joint venture’s mission to create a green energy leadership position in China, and is also a vote of confidence in Europe. The cooperation agreement, which was signed in Beijing in October 2018, will include complementary technologies and green energy manufacturing facilities.

At least as long as the Euro remains the currency, Europe will face export competition from China on the Tesla Model 3 and other EVs. The two cities in China closest to European rivals are Shenzhen and Dalian. Both cities sit in China’s industrial heartland: Shenzhen in the Pearl River Delta region and Dalian in the north-east. As of November 2017, Shenzhen, China’s most densely populated city, had a total population of 20.3 million people and a density of 15 people per square kilometre. Dalian has a population of 6.5 million and density of 8 people per square kilometre.

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