Battery pack assembly at Gotion’s Göttingen plant officially commenced at a launch on the 16th of September. This marks the milestone of being Gotion’s first battery pack production and operation base in Europe. At the same event, Gotion also signed contracts with other well renowned companies: BASF, ABB, Ebusco, Ficosa and Idneo. Aimed at collaborating with them to enhance its R&D efforts into battery production and technology.

A European Beginning for Gotion

The opening of this facility marks a substantial step in furthering Gotion’s global reach, with this its inaugural European base. The factory has already received substantial orders from European customers and is scheduled to begin deliveries in October. The battery packs produced will have a range of applications including commercial and passenger vehicles, and energy storage systems.

The eventual capacity of the Göttingen factory is expected to be 20GWh, to be achieved through a four-phase plan. Gotion envisions the Göttingen factory to eventually reach a capacity of 20GWh, following a well-structured four-phase plan. By mid-2024, it aims to have the plant operating at a 5GWh capacity. The factory has a high level of automation, overall, circa 70%, increasing to circa 80% in the module assembly phase.

Beyond production, the plant will serve as Gotion’s R&D centre, logistics hub, and after-sales service centre for its European operations base.

Strategic Planning in Europe

On the same day as the opening, Gotion also signed cooperation agreements with five companies. These collaborations will involve various aspects of battery production and technology development. It will cooperate with BASF on battery material-related projects. With ABB it will work on battery product supply and technology R&D, aiding Gotion’s new European and American factories. The partnership with Ebusco will concentrate on energy storage battery systems as well as wind and solar energy storage initiatives. While Gotion’s cooperation with Ficosa and Idneo will span intelligent energy storage, charging vehicles, recycling, BMS, and Big Data.

Rho’s Evaluation

The Göttingen plant is a pack manufacturing facility, meaning it still has strong reliance on China for the supply of cells. Nevertheless, it demonstrates Gotion’s gradual global expansion strategy, following announcements of facilities in the US, Morocco and Southeast Asia. Given the increasing scrutiny of Chinese firms in the US, particularly in the context of the IRA, diversifying operations into Europe reduces dependence on a single market, mitigating risks. Furthermore, it validates Gotion’s commitment to international compliance and European regulations while continuing to operate in China.

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