That figure would be more than seven times the 240 million euros that Contemporary Amperex Technology Ltd. had set aside when it revealed plans last July to start a factory in the German city of Erfurt.

 

The sharp rise mirrors solid demand in overseas markets, the Chinese company said, adding that the investment will drive its global strategy faster.

 

CATL's investment elevate comes as Beijing pivots toward the E.U. in the midst of an escalating trade conflict with the U.S. Chinese Premier Li Keqiang and Chancellor Angela Merkel attended the signing ceremony for the new factory last year. Beijing wants to reinforce its economic and technology ties with European countries by supplying parts and cooperation to help fuel autonomous driving and other growth fields.

 

The planned factory is set to start out churning out lithium-ion batteries in 2021 for supply to such European players as Volkswagen, Daimler and Groupe PSA.

 

Automakers are considerably going electric, with BMW set to launch its electric-vehicle development and production two years earlier than predicted under plans announced Tuesday.

 

Source: Tronserve