Electromobility CATL CEO criticizes European battery industry

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Robin Zeng, CEO of CATL, the world's largest battery manufacturer, criticized Europe's battery industry in a recent interview. He attributed its shortcomings to "incorrect designs, flawed processes, and inadequate equipment," pointing to key areas where he believes European companies are lagging in the global competition for battery production.

"Why can't Europeans build good car batteries?" This provocative question was recently posed by Robin Zeng, founder and CEO of CATL, in an interview—and he immediately answered it himself: Europeans have "first, the wrong design, second, wrong processes, and third, wrong equipment." For many engineers and entrepreneurs in Europe, this critique is likely painful. It could be dismissed as boasting or PR noise, but with a current global market share of around 37%, CATL stands as the largest battery manufacturer on the planet.

Zeng's sharp assessment of European battery makers came in an interview with Nicolai Tangen, CEO of the Norwegian pension fund "Norges Bank Investment Management" (NBIM), which has heavily invested in CATL. In a concise, ten-minute interview, Tangen pressed Zeng with questions on the competitiveness of Chinese and European battery producers, technological trends, and Zeng’s personal background.
 

Production Scaling Challenges

Northvolt is currently Europe's biggest hope for power batteries. However, the company recently had to scale back its gigafactory plans in Skellefteå, Sweden, after BMW pulled a large order. Against this backdrop, Tangen’s question on why "Europe struggles with production scaling" is especially timely. Not just Northvolt but also European automakers like Volkswagen have recently had to revise their battery factory plans.

 According to Zeng, Europe lacks good products, particularly efficient, safe, and affordable batteries. Without these, selling affordable electric cars becomes challenging, contributing to the recent drop in demand for EVs in Germany and Europe. “I talk to many people in Europe about why they can’t make a good product,” says Zeng. “It’s because they have, first, a wrong design, second, a wrong process, and third, wrong equipment.”

I talk to many people in Europe about why they can’t make a good product. It’s because they have, first, a wrong design, second, a wrong process, and third, wrong equipment.

Robin Zeng, founder and CEO of CATL

Lack of Materials Science Graduates

Zeng explains that in his industry, the chemicals used in batteries are critical, and engineers must master complex processes within the battery. Both require expertise in materials science—an area where European universities are seeing fewer students, according to Zeng. He had raised this issue with Angela Merkel 12 years ago, noting that Germany was already questioning why it couldn’t build good batteries despite its success with internal combustion engines and transmissions.

 “Unfortunately, China still has many universities working on electrical chemicals,” Zeng adds. In Europe, job prospects for graduates in electrochemistry are relatively poor compared to fields like finance or semiconductors. Meanwhile, China continues to produce large numbers of materials science and electrochemistry students. “This is why we have a lot of talent compared to Germany,” says Zeng. “If Germany wants to catch up or overtake us in battery manufacturing, they might need to start with education.”

Complex Understanding of Batteries

The electrochemical system of batteries is highly complex, Zeng explains. Undesirable side reactions can occur, and changes happen within batteries after a certain lifespan. Without a complete understanding, manufacturers will end up with faulty designs and subpar products. “This is why performance and testing may look good on a certain day, but then when they want to scale, establish the process, the process never covers what is needed in the future,” the CATL CEO remarks about his European competitors.

 The interview also provides fascinating insights into Zeng's personal motivation and the corporate culture he has instilled at CATL. He conveys to his employees that producing affordable batteries is a service to the public, not just a job for themselves. Zeng himself comes from a poor village in China, and he shares that despite his success, the idea of buying a yacht holds little joy for him. “We must overcome challenges to create something great, to support the poor and advance renewable energy on Earth,” he says.

 He has intentionally built battery factories in poorer regions of China and donates money to children’s education. His humble origins, Zeng believes, are key to CATL’s success. “My hometown was very poor,” he explains. “I believe that people like me have the necessary confidence that we can overcome all the challenges in the world.”

*Henrik Bork, long-time China correspondent for German 'Süddeutsche Zeitung' and 'Frankfurter Rundschau', is Managing Director at Asia Waypoint, a consulting agency specialized in China based in Beijing.