Europe’s electric vehicle (EV) battery ambitions have taken a major hit after the collapse of Northvolt, once a flagship in the region’s push for independence from Asia’s dominance. However, the continent’s hope now increasingly relies on Chinese investment and know-how.
Slovakian start-up InoBat announced €100 million ($104 million) in Series C funding on Friday, bringing its total to over €400 million. This comes just weeks after Sweden’s Northvolt declared financial troubles, highlighting how partnerships with Chinese battery giants could be Europe’s best shot at sustaining its EV battery goals.
Marian Bocek, CEO of InoBat, acknowledged the critical role of China’s Gotion High-Tech, which acquired a 25% stake in InoBat last year. “Gotion’s expertise allows us to move faster while conserving cash,” Bocek told Reuters. Gotion, China’s fifth-largest battery maker, is partnering with InoBat on large-scale gigafactories in Europe, a collaboration that Bocek says reassures wary investors.
Chinese Expertise Reigns
China’s Gotion currently boasts 150 gigawatt hours (GWh) of nominal battery capacity, equivalent to powering up to two million EVs annually. This is set to grow to 270 GWh by 2025, dwarfing Europe’s existing battery capacity.
Industry experts say such scale and expertise are crucial for Europe to compete. “InoBat’s success is tied to having a heavyweight like Gotion,” said Vikram Gourineni, executive director of Indian battery maker Amara Raja, a key investor in InoBat’s latest funding round.
European projects have often faltered under bureaucratic red tape, production delays, and weaker-than-expected EV demand. Northvolt’s failure to scale its €10 billion venture has spooked investors, with at least eight battery projects postponed or canceled this year.
Gigafactories on the Horizon
Despite challenges, some projects are moving forward. InoBat plans a $1.2 billion gigafactory in Surany, Slovakia, slated to produce 20 GWh of batteries annually by 2027. The factory will supply Volkswagen, which owns a 24.45% stake in Gotion. Slovak government aid of €214 million has bolstered the project.
Bocek says automaker interest in expanding this factory has surged since Northvolt’s collapse. “Investors see our connection with Gotion as a safeguard for delivering results,” he added.
France’s Verkor is another notable effort, backed by Renault, with a €3 billion plan for a gigafactory in Dunkirk by 2028. However, Verkor CEO Benoit Lemaignan emphasized the need to prove their capability. “Automakers want to see the product before committing,” he said.
Risk and Reliance
While Europe aspires to lead in clean energy technology, reliance on Asia, particularly China, remains inevitable. “The Chinese have mastered low-cost, mass production,” said Andy Leyland, co-founder of supply chain specialist SC Insights. “If you want batteries made at scale, Asian manufacturers are your best bet.”
For now, Europe’s path to EV battery independence hinges on partnerships with industry leaders like Gotion. As Bocek noted, “Our collaboration with Gotion isn’t just strategic—it’s essential for surviving in this competitive landscape.”
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