Chinese Battery Supplier Liyuanheng Completes PACK Line for Polish EV Client, Cementing Local European Capability

Liyuanheng has finished a PACK battery-module production line for a Polish commercial-vehicle client, marking a step in localizing Chinese battery manufacturing in Europe. The development shortens supply chains for fleet electrification and highlights competitive and policy challenges for European suppliers and regulators.

Top view of two AA batteries with yellow tops on a dark surface.

Key Takeaways

  • 1Liyuanheng completed a customised PACK production line for a Polish commercial-vehicle customer, signalling operational localization in Europe.
  • 2Local PACK assembly improves lead times, after-sales service and compliance with regional vehicle standards for commercial EVs.
  • 3The move reflects a broader pattern of Chinese battery suppliers locating manufacturing capabilities closer to European markets.
  • 4Greater presence of Chinese suppliers in Europe will intensify competition, test incumbent suppliers and attract regulatory scrutiny over supply-chain control.

Editor's
Desk

Strategic Analysis

This milestone is small in isolation but consequential in aggregate: each localized production line reduces the marginal cost and political friction of supplying European EV manufacturers and fleets. For China-origin suppliers like Liyuanheng, Europe-based PACK assembly is a pragmatic way to capture the lucrative commercial-vehicle electrification market without the investment and time required for full-scale gigafactories. Policymakers and legacy suppliers should expect accelerating pressure on margins and a renewed debate about strategic industrial policy — from incentives for domestic battery investment to tighter rules on procurement and certification. For OEMs and fleet operators, the immediate payoff is cheaper, faster access to batteries and better local support; for industry watchers, the longer-term outcome will hinge on whether European value-add in design and high-end cell chemistry remains competitive or gradually migrates as well.

China Daily Brief Editorial
Strategic Insight
China Daily Brief

Liyuanheng, a Chinese battery-systems supplier, has commissioned a customised battery module and pack (PACK) production line for a Polish commercial-vehicle customer, the company announced on its WeChat account. The completion of the line — described as an “out-of-machine” handover — is presented as evidence that the firm’s localized design, manufacturing and service capabilities in Europe have moved from pilot to practical deployment.

A PACK production line assembles cells into modules and integrates those modules into battery packs, the central energy units for electric vehicles. For commercial vehicles, which demand high durability, consistent supply and tailored configurations for fleets, having a locally engineered PACK line reduces lead times, simplifies after-sales support and allows quicker iteration to meet European safety, thermal-management and homologation requirements.

The move is part of a wider trend of Chinese battery and EV supply-chain firms establishing production or assembly capacity closer to key overseas markets. By placing production in Poland, Liyuanheng can serve customers inside the European single market with fewer logistics frictions and potentially lower tariff and regulatory exposure than shipping completed packs from China. That proximity also strengthens the supplier’s ability to offer on-site service and to adapt products to local standards.

For European vehicle makers and fleet operators, the arrival of more China-rooted suppliers on the continent promises greater choice and price discipline, especially in the expanding light‑commercial and delivery-vehicle segments. It also raises questions for incumbent European suppliers and policy makers about industrial strategy, technology transfer and supply-chain resilience, at a moment when governments are increasingly attentive to where critical battery production sits and who controls it.

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