Ningde will established a battery factory in Germany.

According to foreign media reports, people familiar with the matter said that the Chinese battery industry giant(CATL) is about to decide to establish a battery factory in Germany as an important part of its European market.

The person said that CATL was considering setting up a battery plant in the German state of Thuringia. Because the site review was conducted in private, the person concerned asked not to be named. They said that CATL is also exploring suitable addresses in Poland and at least one other European country and may eventually choose to build factories where it has been considered. A representative of CATL declined to comment.

CATL plans to issue 10 shares of its total share capital in an initial public offering to raise funds for further expansion of its overseas markets. CATL, located in the southeastern Chinese port city of Ningde, has been considering building a factory in Europe since the beginning of this year. At present, there is only one Nissan battery factory in Europe. The scarcity of battery factories means that this is a blue sea market. But Mr. Ouzhu's auto parts makers appear reluctant to invest in the battery industry against the leading Asian battery suppliers Samsung SDI, LG Chemical and Panasonic. Bosch, the world's leading supplier of parts and components, decided three months ago not to make a battery core, saying it would cost more than 20 billion euros($23.5 billion).

SabineAngermann, a purchasing executive at Daimler, said last month that Daimler was discussing supply cooperation with CATL, which could become its power battery supplier. CATL's current mainframe customers include Volkswagen, BMW, Nissan, and Hyundai.

Hardware unions this week stressed that building battery plants in Germany could help ease job changes in the country's auto industry. Electric vehicle production could add 25,000 jobs by 2030, but could lead to the disappearance of engine and transmission manufacturing, leading to the loss of an additional 75,000 jobs, the ILO said in a report on Tuesday.

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