Lotus Cars is struggling to find a European battery supplier due to the widespread collapse and financial distress facing Europe’s domestic battery manufacturing sector. Under its parent company Zhejiang Geely Holding Group, Lotus initially planned to anchor its local supply chain through European partners. However, the bankruptcies of key regional players like Britishvolt Ltd. (with whom Lotus had a formal development deal) and Northvolt AB have completely stalled these efforts
Lotus’s primary UK battery cell partnership with Britishvolt evaporated after the startup went bankrupt. Regional giant Northvolt also filed for bankruptcy after failing to scale production.
Skyrocketing energy costs and operational expenses in Europe make local cell assembly uncompetitive.
Lower-than-expected demand for luxury electric vehicles has caused tier-1 suppliers to hesitate to invest in localized low-volume, high-performance battery lines.
As detailed in recent business strategy assessments, the lack of a regional battery pipeline has forced Lotus to aggressively overhaul its product roadmap.
Lotus has lowered its production target to 30,000 cars per year by 2030, a sharp reduction from its initial ambitious goal of 150,000 vehicles by 2028.
Shift to “Hyper Hybrids”: The brand has officially abandoned its strict 2028 EV-only mandate. The Geely owned company, which had targeted a fully electric lineup by 2028, now aims for a portfolio split of 60% hybrid and 40% battery electric vehicles under a long-term plan it calls “Focus 2030.
It is pivoting hard toward plug-in hybrid electric vehicles (PHEVs) like the newly introduced Eletre PHEV (“For Me”) and exploring a hybrid version of the Emira sports car.
Moving toward hybrid powertrains helps Lotus bypass heavy EU and global tariffs targeting pure Chinese-built electric vehicles, buying the brand time while it seeks UK government backing to modernise its historic Hethel facility.
Lotus CEO Qingfeng Feng told Reuters the company aims to increase annual sales to 30,000 vehicles by 2028, with most growth coming from China and from the rollout of plug-in hybrids in Europe.
Did you know that Qingfeng Feng has served as our director and Chief Executive Officer since the Geely take over. Since joining Geely Holding Group in 1999, he has worked in sales, manufacturing, supply chain, quality management and R&D, among other areas. He is Senior Vice President of Geely Holding Group.
Last year, Lotus sold around 6,500 cars globally, down 45% from the previous year. Feng said the automaker will roll out a long-range plug-in hybrid version of virtually all of its electric models.
Lotus said its debut supercar, “Type 135,” will be built in Europe, with further details due later this year. A supercar is a high-performance sports car.
