Beijing: Gotion High-Tech, the eighth-largest producer of electric vehicle (EV) batteries in the world and the fourth-largest in China, said it is in early discussions with several international automakers about supply agreements that could speed up its growth in markets like North America and Europe.
According to Ray Chen, a Gotion vice-president who oversees the company's international operations, the company, which is partially owned by Volkswagen, is adamant about constructing more factories outside of mainland China and expects international sales to make up "a considerable share" of its total revenue starting in 2025.
At the company's headquarters in Hefei, the capital of the East Chinese province of Anhui, he told the Post, "We will expand our footprint abroad, banking on our technological clout and the trust our clients place in us. "When our production lines are finished in 2025, we anticipate that Gotion's businesses outside of China will grow rapidly.
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Because the talks are still in the early stages, Chen declined to give the names of the automakers, but he emphasised that several well-known automakers had expressed a strong interest in using Gotion's battery cells to power their electric vehicles.
His comments came after Gotion's founder and chairman Li Zhen said at a media briefing that the company's key strategy in the coming years would be to go global as electrification spreads across the world's automotive industry.
Opportunities will present themselves in four key markets: China, Southeast Asia, North America, and Europe. Gotion plans to pursue expansion in the other three markets.
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The largest EV market in the world, China, reported sales of 6.5 million electric vehicles in 2022, or 60% of the global total. According to Li, China's market share will eventually drop to about 25% due to the other three markets' rapidly increasing EV penetration.
Gotion received approval to erect a $175 million plant in the US state of Michigan at the beginning of this month following a 10-9 vote by the state's Senate Appropriations Committee.
The company is getting closer to starting construction on the facility, according to Chen.
Because their products and technologies outperform those of their competitors globally, geopolitical tensions won't prevent China's EV makers and battery producers from expanding into foreign markets, according to Gao Shen, an independent analyst in Shanghai. "Gotion and other Chinese EV battery companies will keep investing outside of China."
Six of China's battery manufacturers, including Gotion, made the list of the top 10 players in terms of market share in 2022. China is home to 76% of the world's EV battery production capacity.
According to South Korean-based SNE Research, Gotion installed 14.1 GWh (gigawatt hours) of batteries last year, claiming a 2.7% global share, falling short of CATL's 37%, BYD's 13.6%, and CALB's 3.9%. In its earnings report on Thursday, Gotion stated that its overseas sales would increase by 465% to 2.98 billion yuan (US$431 million) in 2022.
It reported a net profit of 312 million yuan, up 206.2%, and revenue of 23 billion yuan, up 122.6%.
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Ford Motors announced in February that it would work with CATL to build an EV battery factory in Michigan for US$3.5 billion. Unlike most partnerships, Ford will fully own the facility and produce the low-cost lithium ferrous phosphate battery under a licence from CATL.