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Construction begins on CATL battery plant at the "Erfurter Kreuz"

Tiefensee: “A superlative development” / Thuringia will become the most important location for battery production in Europe / 1.8 billion euros investment, 2,000 new jobs

Media information from the Thuringian Ministry for Economic Affairs, Science and Digital Society

The Free State of Thuringia is becoming the most important European location for battery cell production: Thuringia's Minister of Economic Affairs, Wolfgang Tiefensee, together with the company's European head, Matthias Zentgraf, today broke ground on the new battery cell plant of the Chinese company Contemporary Amperex Technology Co. Ltd. (CATL) at the "Erfurter Kreuz" interchange near Arnstadt. By the beginning of 2022, "Contemporary Amperex Technology Thuringia GmbH" (CATT) will be the first CATL production facility outside of China.

In total, the company is investing €1.8 billion in its site over the medium term and creating up to 2,000 jobs. "This project is a superlative investment in many respects," said Tiefensee, who had been actively lobbying for the company's relocation since the beginning of 2017. The state's roughly 18-month-long, tenacious struggle to secure the contract has ultimately paid off. "For Thuringia, the establishment of CATL is one of the most significant industrial investments of recent decades."

The plant, with an initial capacity of 14 gigawatt-hours and later up to 24 gigawatt-hours, will focus on the automated production of lithium-ion batteries for motor vehicles. "This means that the technology that makes the German and European mobility transition possible in the first place is coming from Thuringia," said Tiefensee. The company will also invest significantly in research and development, quality control, and high-quality services. Thuringia has pledged its support for the investment and the planned research activities within the framework of state aid regulations.

The decision to locate in Thuringia was based, among other things, on its central location in Germany and Europe, its well-developed transport and research infrastructure, and its proximity to major automotive manufacturers. All German OEMs are reachable from Thuringia within four hours by truck. "However, a decisive factor for the investment was the strategic cooperation we agreed upon in the research-intensive areas of factory automation and battery technology," said Tiefensee. CATL's investment decision for Thuringia was officially sealed on July 9, 2018, during the German-Chinese government consultations at the Federal Chancellery in Berlin.

The company acquired land for its investment project at the "Erfurter Kreuz" industrial park, which is being developed and marketed by the Thuringian State Development Corporation (LEG). "We supported CATL on its journey to Thuringia with our full-service offering," said Andreas Krey, Managing Director of LEG. "We are delighted that the company is starting construction at our site and will continue to support CATL with advice and assistance in its future endeavors in the Free State."

CATL is expected to begin production as early as the end of next year. To this end, the company has recently acquired a building complex at the "Erfurter Kreuz" interchange from the insolvent SolarWorld Industries GmbH. The state government anticipates that the investment will send a strong signal to attract further companies and research institutions in the field of battery technologies, Tiefensee added. "Thuringia can capitalize on the momentum of this development to become a leading industrial and research location for modern storage technologies in Germany and Europe."

Stephan Krauß
Press officer, head of department

Photo: Thomas Abé

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