Chinese company Contemporary Amperex Technology (CATL), the world’s largest car battery manufacturer, set up its first domestic rail freight service in China. The first test train ran from Guiyang and Yibin, in the southeast, to Shanghai, on the East China Sea.
Despite being a domestic service, this initiative could bring significant change to the electric vehicle market in Europe as well. China has often been reluctant to place car batteries on trains for safety reasons. At the end of 2023, a first exception was made, with a dedicated rail freight route connecting Changdu with Moscow. This move was the result of increased demand for Chinese electric cars in Russia.
With the new trial run by CATL to Shanghai, new doors might open also for the rest of the European market. This is because, from there, batteries can be moved onto ships and then transported to the Old Continent. Currently, over 90 per cent of lithium batteries in China are moved via road, and a significant transfer of volumes to the railways is expected to reduce the costs of the electric car industry as a whole.
European Silk Road Summit 2024
Asia – Europe rail freight is one of the key topics to be discussed at the European Silk Road Summit 2024, taking place in Vienna on 27-28 November.
Registrations for the yearly event are already open, while the programme, which this year highlights the fast-recovering China-Europe rail market, is shaping up.