Germany-based automotive supplier ZF continues to scale up its localization in China. On Tuesday, the company broke ground on its third e-mobility plant in recent years. The facility, which will primarily produce electric axle drives, will start first-phase operations in 2025.
ZF is working on growing its presence in China, as the country holds the world's largest EV market. At the end of May, ZF said it plans to increase sales in the Asia Pacific region, mostly from China, from 25% to 30% of its global sales by 2030.
The automotive supplier held a groundbreaking ceremony for its New Energy Vehicle eDrive Project in Shenyang, China, on June 13. According to an announcement, ZF will invest CNY1 billion (US$139.6 million) in the plant. It aims to launch the first phase of the project in March 2025.
ZF said products made at the new plant will be based on the company's modular kit electric drive platform and thus can meet power requirements from 100kW to 300kW. They will cover front and rear axles, including motors, power electronics and reducers.
The company also said the power electronics incorporate ZF's High 2.0 SiC technology and are continuously upgraded on the 800-volt platform.
According to ZF, its electrified powertrain technology division has won EUR30 billion (US$32.4 billion) in backlog orders from OEMs in passenger and commercial vehicle segments globally.
The Shenyang plant is ZF's third e-mobility plant in China since 2021. The company launched an electric drive project for electric motors, power electronics and electric drive systems last year. It also commenced the second phase of the ZF Hangzhou Drivetech project, which mainly produces 800-volt electric drives and reducers.
On May 26 of this year, ZF saw its Asia Pacific steering production line in Shanghai deliver the 20 millionth electronic power steering (EPS) system and inaugurated a new production facility for ZF Automotive Technology (Shanghai). It invested CNY320 million in the project as part of its efforts to expand product portfolio and capacity in China.
