Author name: Cornelius Karow

BMW plans to begin series production of high-voltage batteries for the all-electric BMW iX5 at its new Woodruff plant in South Carolina in December 2026. According to the company, test and pre-series batteries are already being produced at the facility. The batteries will then be shipped to the nearby Spartanburg vehicle plant, where the iX5 will be assembled. The Woodruff plant is part of BMW’s global “Local for Local” production strategy, under which batteries are assembled close to the company’s vehicle manufacturing plants. In addition to Woodruff, BMW has established or is establishing similar battery assembly sites in Germany, China, Mexico, and Hungary. AI and digital planning intended to improve battery assembly According to BMW, the Woodruff plant uses AI-supported production processes, digital twins, and virtual reality applications. More than 300 employees and 250 robots are expected to support the assembly of high-voltage batteries. The company says all production steps are continuously monitored and documented in real time. AI assistants are intended to analyze the resulting data and support manufacturing operations. Gen6 battery with 800-volt architecture for the BMW iX5 The batteries are based on BMW’s sixth-generation high-voltage battery technology. Cylindrical battery cells are integrated directly into the battery pack using the company’s Cell-to-Pack design. The battery-electric BMW iX5 will feature BMW’s sixth-generation eDrive technology with an 800-volt architecture. According to the company, the high-voltage battery provides a usable energy capacity of 144 kWh in the U.S. and 141 kWh in Europe, making it the largest battery ever offered in a fully electric BMW model. Source:https://www.press.bmwgroup.com/deutschland/article/detail/T0459239DE/erste-einblicke-in-die-produktion:-bmw-group-werk-woodruff-montiert-die-hochvoltbatterien-fuer-den-neuen-bmw-ix5

Chinese battery manufacturer Gotion is engaged in advanced negotiations with Volkswagen over a potential stake in the PowerCo battery cell plant in Sagunto, Spain, according to the Spanish trade publication La Tribuna de Automoción. The report says the companies are considering a structure under which Gotion would acquire a majority stake in a joint venture for the facility, while PowerCo would retain an ownership interest. PowerCo declined to comment on the report to Reuters, stating only that it regularly evaluates strategic opportunities and partnerships. A company spokesperson also said there are no plans to relinquish control of the site. Gotion did not immediately comment. Industry Report Points to Potential Majority Stake According to La Tribuna de Automoción, the negotiations have been underway for several months. The publication cited industry sources who said Gotion CEO Li Zhen has visited the site and held discussions with PowerCo representatives. The report states that both the technical and commercial aspects of a potential investment have been evaluated. It also says the negotiations are limited to the Sagunto facility and do not involve PowerCo’s battery business as a whole. Battery Plant Is Part of Volkswagen’s European Strategy The Sagunto plant is one of PowerCo’s key projects. Volkswagen announced the start of construction of the battery cell factory in 2023. According to the company, the facility is initially designed for an annual production capacity of 40 gigawatt-hours, with the potential to expand to 60 gigawatt-hours. The battery cells produced at the site are intended in part for Volkswagen’s vehicle plants in Spain. Based on the current timeline, production is expected to begin by the end of 2026. The installation and commissioning of manufacturing equipment, as well as the construction of clean rooms and dry rooms, are currently underway. Sources:https://www.reuters.com/world/china/volkswagen-takeover-talks-with-chinese-partner-spanish-battery-plant-trade-2026-07-27/https://www.latribunadeautomocion.es/2026/07/gotion-negociaciones-powerco-sagunto/https://www.volkswagen-group.com/en/press-releases/gigafactory-valencia-powerco-gives-starting-signal-for-construction-of-second-cell-factory-17033https://www.eldiario.es/comunitat-valenciana/economia/powerco-reajusta-inicio-produccion-gigafactoria-sagunto-finales-ano_1_13380485.html

CATL and the Eastern European company Solarpro have signed a strategic agreement for the supply of sodium-ion battery energy storage systems with a total capacity of 2 GWh. According to the companies, the systems will be deployed in projects across Central and Eastern Europe. The goal is to develop the region’s first large-scale sodium-ion energy storage project and evaluate the technology under local grid and climate conditions. The agreement builds on an existing partnership. In May 2026, CATL and Solarpro commissioned a 602 MWh battery energy storage project in Bulgaria. According to the companies, the project increased the country’s total energy storage capacity by 10%. Focus on Operation in Cold Climates According to CATL, the sodium-ion energy storage systems are particularly suited for regions with low temperatures. The company also cites long cycle life as another advantage of the technology. Together with Solarpro, CATL plans to develop storage solutions tailored to the requirements of power grids and climate conditions across Central and Eastern Europe. According to the companies, Solarpro will be responsible for project development, system integration, and the long-term operation and maintenance of the installations. CATL says the partnership is also intended to provide insights into regional market requirements and identify additional applications for sodium-ion battery technology. With the agreement, CATL continues the expansion of its sodium-ion technology in Europe. It marks the company’s second order for this energy storage technology in Europe within a short period. Sources:https://www.catl.com/en/news/6916.htmlhttps://cnevpost.com/2026/07/21/catl-sodium-battery-storage-deal-solarpro/

China will introduce a consumption tax on lithium-ion batteries starting in September 2026, ending a tax exemption that has been in place since 2015. According to China’s Ministry of Finance, lithium-ion batteries will initially be subject to a 2% consumption tax. The rate will increase to 4% in September 2027. At the same time, sodium-ion batteries, solid-state batteries, and fuel cells will remain exempt from the consumption tax through the end of 2028. Tax Incentives Shift Toward Newer Battery Technologies In addition to lithium-ion batteries, the new consumption tax will also apply to lithium primary batteries, mercury-free primary batteries, nickel-metal hydride batteries, and vanadium redox flow batteries. While these products will gradually become subject to the tax, sodium-ion batteries and solid-state batteries will remain exempt between September 2026 and the end of 2028. The policy ends an 11-year exemption for lithium-ion batteries. The planned 4% tax rate matches the rate that has applied to other battery categories since 2015. According to the Chinese authorities, battery products must comply with applicable national standards. Companies will also be required to submit compliance test reports when applying for tax exemptions for the first time. Industrial Policy Adjustment According to the state-run news agency Xinhua, China says the policy changes are intended to support industrial upgrading and environmental protection. Reuters also noted that Chinese policymakers have been seeking to curb excess production capacity, including in the battery industry. The tax changes follow other adjustments to tax incentives for alternative-energy vehicles and indicate a gradual reduction in government tax support for parts of the battery sector. Sources:https://www.reuters.com/legal/transactional/china-levy-consumption-tax-on-lithium-ion-batteries-solar-cells-2026-07-17/https://cnevpost.com/2026/07/17/china-to-impose-consumption-tax-lithium-batteries/

Starting in 2027, Chinese battery manufacturer CATL and Dutch energy infrastructure company Alfen plan to deploy sodium-ion battery energy storage systems with a total capacity of 5 GWh in the Netherlands and other Western European countries. According to the companies, these will be the first installations of the “Tener Sodium” energy storage system in the European market. In late June, CATL introduced the storage system, describing it as a field-validated sodium-ion solution for stationary energy storage. Initial deliveries in China are scheduled to begin in September. CATL expects total shipments to reach 1 GWh by the end of 2026, with global commercial deliveries planned to begin in June 2027. Validation in the European Power Grid CATL claims that the system is designed for a 25-year service life and delivers nearly 2% higher round-trip efficiency than current technology. Each system has a storage capacity of more than 30 MWh and can be configured for storage durations ranging from one to eight hours, depending on project requirements. CATL also states that the system is compatible with lithium iron phosphate (LFP) batteries. This enables Alfen to utilize various battery chemistries and mitigate its vulnerability to fluctuations in lithium prices. CATL intends to leverage the partnership to gain experience with sodium-ion batteries in European power grids and adapt the technology to European grid requirements. Sources:https://alfen.com/en-de/news/alfen-and-catl-reach-5-gwh-sodium-ion-battery-storage-partnership-in-europehttps://cnevpost.com/2026/07/16/catl-sodium-battery-storage-europe-alfen-deal/

The U.S. joint venture between Hyundai Motor Group and SK On has started series production of battery cells. According to The Atlanta Journal-Constitution, Hyundai SK Battery Manufacturing America began mass production in June. The battery cells are being delivered to the Hyundai Motor Group’s “Metaplant America”, where electric vehicles for the U.S. market are manufactured. The battery joint venture was established in 2023. Hyundai and SK On invested a combined $5 billion in the site. The state of Georgia supported the project with $641 million in tax incentives and other financial assistance. Annual Capacity of 35 Gigawatt-Hours Planned The plant site covers approximately 3 million square meters. Around 3,500 people work at the facility. Once production is fully ramped up, annual capacity is expected to reach 35 gigawatt-hours. However, manufacturing is currently still in the early stages. The battery cells are expected to be assembled into battery packs by Hyundai Mobis. These packs are intended for electric vehicles manufactured in the United States by the Hyundai, Kia, and Genesis brands. Georgia Expands Its Battery Industry The new plant adds to Korean battery production in Georgia. SK Battery America already operates facilities for vehicle batteries and components in the state. Hyundai and LG Energy Solution are building another battery plant near the Metaplant. Construction was delayed when U.S. immigration authorities detained numerous Korean workers at the site. Source:https://www.koreaherald.com/article/10809681