* The factory's early stages required hundreds of engineers and technicians from China to stabilize operations and train local staff. Now, with a largely European workforce in place, collaboration has become part of the plant's daily rhythm.

* "Chinese producers now dominate not only in cell chemistry and systems integration, but also in recycling and life cycle management," said Ferdinand Dudenhoeffer, a renowned German automotive expert.

* "This kind of deep industrial cooperation helps anchor bilateral ties beyond politics," said Michael Schumann, chairman of the German Federal Association for Economic Development and Foreign Trade. "It reflects mutual trust, long-term vision and shared value creation."

by Xinhua writer Li Hanlin

BERLIN, July 27 (Xinhua) -- Nestled at the heart of Germany's industrial corridor, a Chinese-backed battery gigafactory offers a revealing glimpse into stronger Europe-China collaborate in powering Europe's green energy transition.

Located in Arnstadt, Thuringia, the 1.8 billion euros (2.11 billion U.S. dollars) facility, built and run by the Chinese company CATL, has been operating since late 2022 as the first large-scale power battery manufacturing site in Germany.

With an annual design capacity of up to 30 million cells, enough to power roughly 200,000 electric vehicles, the factory supplies key European automakers racing to decarbonize under mounting regulatory and market pressure.

Yet the plant is more than just a production facility. It has emerged as a test case for cross-border industrial integration, merging China's battery expertise with Germany's engineering tradition, and offering a model of how the two can collaborate in the green transition.

This photo shows the Superfast Charging Battery Shenxing displayed at the booth of Contemporary Amperex Technology Co., Ltd. (CATL) during the 2023 International Motor Show, officially known as the IAA MOBILITY 2023, in Munich, Germany, Sept. 5, 2023. (Xinhua/Zhang Fan)

CROSS-CULTURAL COLLABORATION

The factory's early stages required hundreds of engineers and technicians from China to stabilize operations and train local staff. Now, with a largely European workforce in place, collaboration has become part of the plant's daily rhythm.

"I was skeptical about Chinese manufacturing at first," said Amjad Abdallah, a module assembly technician. "But working side by side, I saw how precise their systems are and how high their standards really are."

Joint teams of Chinese and European technicians now work together to calibrate assembly lines, fine-tune precision tolerances, and troubleshoot automated systems. As workflows become more integrated, informal cultural exchanges are emerging as well, basic greetings in Chinese and German have become part of the shop floor's everyday soundscape.

"At first, we relied on gestures and English," said Qian Lei, a Chinese engineer. "Now we're joking in basic German."

The effects of this collaboration extend beyond the factory walls. Local public transport has added new routes to serve the facility, complete with bilingual signage. Small businesses catering to Chinese employees, such as restaurants and coffee shops, have sprung up in the city center, reflecting a level of social integration rarely seen in foreign-led industrial projects.

As the number of expatriate staff declines, local employees have taken over core functions including module integration, packaging, and logistics. "I'm heading back to China soon. The team here is fully capable," said Qian.

This file photo shows the Contemporary Amperex Technology Thuringia GmbH in Thuringia, Germany. (CATL Germany/Handout via Xinhua)

GROWING GREEN CAPACITY

The Arnstadt plant represents part of a broader wave of Chinese investment across Europe's battery value chain. Chinese battery makers are stepping up efforts to establish localized production across Europe.

New CATL plants are under construction in Hungary and Spain, while other firms are investing in Slovakia and expanding operations in Hungary, launching their first European factories. Together, these projects aim to support European carmakers with local supply chains and advance the region's shift to electric mobility.

The Arnstadt site has become CATL's first overseas plant to operate with net-zero carbon emissions. It runs on green electricity, uses fully electrified internal logistics, and is managed through a smart energy control system. The plant is also collaborating with Germany's Fraunhofer Institute to develop battery life prediction models, aiming to improve durability, enhance resource efficiency, and lower long-term maintenance costs.

"The plant not only produces next-generation batteries with a lower carbon footprint but also promotes circular economy practices, such as recycling and energy efficiency," said CATL spokesperson Caspar Spinnen. "It showcases how international collaboration can accelerate the shift toward a greener, more sustainable future."

"Chinese producers now dominate not only in cell chemistry and systems integration, but also in recycling and life cycle management," said Ferdinand Dudenhoeffer, a renowned German automotive expert.

The Thuringia site has already generated more than 1,000 jobs while supporting local construction, retail and transit services. Arnstadt Mayor Frank Spilling said rising tax revenue is being reinvested into public infrastructure, including daycare centers and housing developments.

"This project has helped establish Thuringia as a future hub for battery research and production," said the state's Economy Minister Colette Boos-John.

This photo taken with a mobile phone on May 7, 2025 shows people visiting the booth of Contemporary Amperex Technology Co., Ltd. (CATL) during 2025 Intersolar Europe exhibition in Munich, Germany. (Xinhua/Huang Yan)

STRATEGIC ALIGNMENT

As China and the European Union mark the 50th anniversary of diplomatic ties, their leaders on Thursday convened for the 25th China-EU summit in Beijing and issued a joint statement on climate change, in which they recognized that strengthening China-EU cooperation on the issue will impact the well-being of people on both sides.

Amid Europe's accelerating shift toward green industry, the experience of one small town in Thuringia offers a glimpse into how China-Europe cooperation is helping drive regional economic transformation.

"This kind of deep industrial cooperation helps anchor bilateral ties beyond politics," said Michael Schumann, chairman of the German Federal Association for Economic Development and Foreign Trade. "It reflects mutual trust, long-term vision and shared value creation."

"The cooperation is no longer just practical, it has become essential," said Dudenhoeffer. "Chinese firms lead in production efficiency and energy density; European automakers remain ahead in user experience and design. It's a natural and strategic complement."

The battery facility is part of a broader trend. Chinese automakers are deepening their industrial partnerships in Europe and accelerating local operations. BYD is building a car manufacturing plant in Hungary; Chery has formed a joint venture with Spain's Ebro to produce electric vehicles; and SAIC also plans to set up its assembly base in Europe. As Chinese brands expand their presence, their EV models are gaining growing traction among European consumers.

From a small town in Germany, the evolving partnership between Chinese technology and European manufacturing is reshaping how and where green mobility is built.