Opportunity Arises with Volkswagen-Xpeng Partnership

author: FutureCar Staff    

China Aviation Lithium Battery Technology (CALB) is celebrating the deal signed between Xpeng and Volkswagen as an opportunity for growth. CALB, one of the top 5 largest constructors of electric vehicle batteries in the world, is the main supplier for Xpeng. With this deal, CALB sees potential for expansion in the European market, emphasizing the importance of their industrial unit in Sines, Portugal.

Volkswagen announced on July 27th that they acquired a 4.99% share in Xpeng for 630 million euros. The purpose of this acquisition is for the joint development of electric vehicles. Both Volkswagen and Xpeng aim to establish a strategic alliance for long-term and mutual benefit. They plan to collaborate on the production of two electric models for the Chinese market, scheduled to start in 2026.

Liu Jingyu, the President of CALB's Administration Council, believes that this deal marks the beginning of a new cycle of growth and success for both Xpeng and CALB. As Xpeng's sole battery supplier, CALB is optimistic about the future.

The Sines factory, expected to be operational by 2025, will help meet CALB's current order backlog in Europe. It will be the largest CALB factory in Europe. The manufacturer estimates that the Sines factory has the potential to contribute around 4% to the Portuguese GDP, as all its sales will be exported to the European market.

In March, CALB initiated the process of environmental licensing for the Lithium Battery Unit project in Sines. They presented a Subject Definition Proposal for an Environmental Impact Study to the Portuguese Environmental Agency in February. By reserving 90 acres in Sines, CALB is progressing with its plan to install a battery factory.

FutureCar Staff