Zeng Yuqun Explains European Battery Failures | Generated by AI

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Question: What did Zeng Yuqun (曾毓群), the CEO of CATL (宁德时代, Ningde Shidai), say about why Europeans cannot make good batteries — citing wrong design, wrong equipment, and wrong processes?

Answer:

Zeng Yuqun (Robin Zeng) on Why Europeans Can’t Make Good Batteries

Who Is He?

Robin Zeng Yuqun (born 1968) is a Chinese billionaire businessman and the founder and chairman of CATL (Contemporary Amperex Technology Co., Limited — 宁德时代新能源科技股份有限公司), the world’s largest battery manufacturer.

The Core Criticism — “Wrong Design, Wrong Process, Wrong Equipment”

In a concise, ten-minute interview with Nicolai Tangen, CEO of the Norwegian pension fund Norges Bank Investment Management (NBIM), Robin Zeng directly answered the provocative question: “Why can’t Europeans build good car batteries?” His answer was blunt — Europeans have “first, the wrong design, second, wrong processes, and third, wrong equipment.”

Breaking Down Each Point

1. Wrong Design

Zeng pointed out that a fundamental problem lies in the design of batteries produced by European companies. He emphasized that the wrong design is the initial pitfall, affecting everything from efficiency to effectiveness.

The electrochemical system of batteries is highly complex, Zeng explained. Undesirable side reactions can occur, and changes happen within batteries after a certain lifespan. Without complete understanding, manufacturers will end up with faulty designs and subpar products.

2. Wrong Processes

Zeng stated: “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 processes used in production are termed as inadequate, leading manufacturers further away from creating a competitive product. When these manufacturers attempt to scale up operations, they encounter utilization problems followed by reliability issues — reflecting a disconnect between scaling ambitions and actual execution capabilities.

3. Wrong Equipment

A telling anecdote emerged: at the end of 2018, a procurement officer from a European battery company visited a Chinese equipment supplier’s factory, and was amazed to discover that Europe’s battery manufacturing practices were still largely manual and had yet to embrace automated production lines — the complete reverse of what one would expect.

Long-Term Safety Consequences

According to Zeng, safety problems emerge several years after production begins, due to compounded earlier mistakes. This not only poses a risk for businesses but also undermines consumer trust and poses potential regulatory challenges across Europe.

Zeng made perhaps his most damning statement when he said: “When I talk to many European battery maker CEOs, I see they cannot make a good product.”

The Broader Picture — Is He Right?

The market data supports his claims. Europe’s response was going all-in on the Swedish Northvolt, which came to a tragic ending.

Northvolt’s electrode sheets were riddled with defects — a ten-meter-long electrode strip could have seven or eight large holes, whereas at a company like CATL, this would warrant a detailed, multi-page report.

Europe’s domestic battery sector is in a structural crisis, with high costs, technological shortfalls, and project delays eroding its ability to compete with Asian manufacturers. Northvolt entered bankruptcy protection, Porsche terminated its Cellforce project, and capacity expansion at ACC was halted.

CATL employs 21,000 engineers in R&D alone — roughly four times what Northvolt’s entire workforce was going to be.

Summary Table

Issue Zeng’s Diagnosis
Design Fundamentally flawed electrochemical design from the start
Process Processes cannot scale; what works in the lab fails in mass production
Equipment Still relying on manual/outdated tooling vs. China’s automation
Outcome Safety failures appear years later; trust and market share collapse

References:

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