The previously announced arrival of Chinese battery components manufacturer Nuode to Wallonia has been suspended due to cited global market instabilities.
A letter sent to the Walloon authorities from the parent company based in Hong Kong revealed a suspension of its European projects, L'Echo reports.
The main project was the construction of a factory in Wallonia, dedicated to the production of copper sheets – key components in making lithium-ion batteries for electric vehicles.
In the announcement, Nuode's shareholders have not given the Walloon public representatives many details to justify their decision.
"The project has been suspended, but not lost. This does not mean that Nuode is definitively stopping its projects in Europe, but it is being frozen for cost reasons," explains Michel Kempeneers, Director General of International Affairs at Awex, to L'Echo.
"In the short term, Nuode believes that it is more attractive for it to bring more products from China than to assemble them in Europe," he continued.
A BYD electric car on display at UEFA Euro 2024 in Hamburg, Germany. The major Chinese EV brand could see its EU sales severely impacted by the Commission's tarifs. Credit: Wikimedia Commons.
The Nuode factory in Wallonia, with an annual capacity of 30,000 tonnes, amounted to a €500 million investment, and was poised to create 510 jobs, including 450 local positions.
In December 2023, the Walloon Government had selected seven projects, including that of Chinese company Nuode, to develop an innovative battery ecosystem within the region to attract international investors.
Before granting financial aid to Nuode, Wallonia put in place Federal Government guarantees with a mechanism similar to foreign investment screening in Europe. The region aimed to involve a series of investors to provide Nuode with 120 million in public funding.
However, this promising project appears to be shelved for now, even if regional investment office Wallonie Entreprendre is optimistic about the future, saying the Chinese company has assured it will resume its project in Wallonia once these uncertainties have been resolved,"
"Nuode points to the uncertainties of the global market. In fact, many battery projects are currently on hold just about everywhere in Europe, for cost reasons, but also because of the slowdown in sales of electric cars. But Nuode says it will resume its project in Wallonia once these uncertainties have been resolved," we are assured.
From toys to strategic goods
The news also comes days after the National Bank of Belgium (NBB) warned against the country's increasing trade dependency on China while calling for greater vigilance.
The NBB highlighted concerns over Europe's excessive dependence on China as the primary supplier of strategic goods, including those crucial for national security, health, energy, and the transition to greener and digital procedures. It attributes the rise in imports to Chinese overproduction and its aggressive industrial policies.
While Belgium’s direct exposure to Chinese imports and exports is small compared to the EU, the focus has shifted from textiles and toys to more advanced goods like electronics and electric vehicles. Belgium relies heavily on China for around 50 of its 200 identified strategic import products, according to the NBB.
