china's catl to build its first european ev battery factory in germany - lithium ion rechargeable battery

MUNICH/BERLIN (Reuters)-
China battery manufacturer contemporary amps Technology Co. , Ltd. 300750. SZ)(CATL)
Will build its first production base in Europe in Germany, with BMW)BMWG. DE)
Lithium supply-ion batteries.
Europe's lack of its own production capacity for electric vehicle batteries has prompted warnings that it could expose the automotive industry and rely too much on others.
Chinese Premier Li Keqiang signed a contract to build a new factory during a visit to Germany on Monday.
About 0. 24 billion euros ($280 million)
Economy minister Wolfgang Stephen West told reporters that the first phase of the project will be invested.
BMW plans to purchase 4 billion euros ($4. 7 billion)
In the next few years, CATL will have 1 battery.
The automaker's purchasing director, Marcus Dusman, said 5 billion euros came from a new plant in Erford, East Germany.
CATL, the world's largest maker of electric vehicle batteries, said the new plant was only its first step in Europe.
"We would like to provide for all original equipment manufacturers (manufacturers)
In Europe, "President Robin once said.
"If the turlingen project is successful then we can consider other locations.
"The CATL plant will create about 600 jobs to reach 14 giva hours of production (GWh)by 2022.
CATL reached 12 GWh shipments in 2017.
German Chancellor Angela Merkel said the CATL investment was a good step, but it did not rule out the eventual competition between Europe and China.
"If we can do this ourselves, then I won't be upset," Merkel said . ".
VDMA engineering industry association said it hoped that CATL's investment would boost further investment in battery technology in Europe.
Earlier, BMW had invested some costs in the CATL plant at Elford, but both he and Zeng Qinghong declined to disclose the amount of the investment, Mr. dursmann said.
BMW is investing in battery research, but has yet to make a decision on whether to produce the battery, Mr. dursmann said.
"I don't rule this out," he said . "
He added that BMW is currently "very happy" with the two battery suppliers, but may add a third and is in talks with eight manufacturers.
Dosman said he would welcome other automakers if they wanted to invest in the Erford plant as well.
However, BMW has no plans to buy batteries in conjunction with rival Daimler. DAIGn. DE)
Because if the battery offers a larger range or charges faster, he says, a competitive advantage can be gained.
Daimler said its strategy is to buy parts where parts are produced.
"We welcome CATL's decision to make it in Germany and are in talks about it," a spokesman said . ".
Ambitious plans for battery production in electric vehicles have driven prices of lithium and cobalt up sharply in recent years, and lithium and cobalt are used to stabilize and extend the life of lithium
Ion rechargeable batteries and raised concerns about the safety of the supply of these metals.
BMW is purchasing raw materials for the battery itself to pass on to battery manufacturers, especially cobalt, and is currently in the process of long-term negotiationsterm contracts.
The company will only sign contracts without considering inhuman conditions and child labor, says Mr. dursmann.
The company said it did not purchase cobalt from mines in Congo.