DHL’s new EV Center of Excellence in Shanghai to help companies in the electric vehicle ecosystem with their international expansion ambitions

• Expanding global portfolio of EV Centers of Excellence by the Group

SHANGHAI, CHINA - Media OutReach Newswire - 22 May 2024 - DHL, the leading global brand in the logistics sector, has opened its latest electric vehicle (EV) Center of Excellence in Shanghai, China to support EV companies and its related sectors to grow their presence locally and globally. This marks the Group's first EV Center of Excellence in China, the largest global EV market, following locations in key regions across the globe including Indonesia, Mexico, the United Arab Emirates and the United Kingdom.

The Shanghai EV Center of Excellence is managed by DHL Global Forwarding, and developed in close cooperation with Team EV of DHL Customer Solutions and Innovation (CSI), DHL Express and DHL Supply Chain. The facility specializes in seamless and integrated end-to-end logistics for EV products, including batteries, electric motors, charging infrastructure and more. It has a dedicated team of specialists to ensure efficient handling, storage and transportation while meeting the unique needs of the EV sector.

"In 2023, Chinese automakers dominated the global EV market, manufacturing over half of the EVs on the roads worldwide and becoming the largest car exporter. As a battery powerhouse, China is home to six of the top ten EV battery manufacturers, supplying close to 60 percent[1] of the world's battery cells. Our deep understanding of the logistical complexities in the EV industry, coupled with our expansive global network, positions us to facilitate this next chapter of international expansion for Chinese EV firms. With the Shanghai EV Center of Excellence, we aim to be the partner of choice for customers seeking international business growth," said Niki Frank, CEO of DHL Global Forwarding APAC.

"It takes an entire ecosystem to support the growth of Chinese EV makers as they expand globally. As the logistics company for the world, we have the know-how in the trade policies and customs regulations of various countries. From documents, parts to raw materials, DHL is fully capable of providing stable and reliable logistics support for industry players in China to tap into the overseas market and help reinforce China's standing in the global EV sector," said Dongming Wu, CEO of DHL Express China.

The burgeoning growth and appetite for EV present specific challenges for manufacturers, such as the need for strategic storage solutions at both the origin and destination to manage increased battery shipments. Additionally, with batteries classified as dangerous goods, there are stringent safety and regulatory requirements to navigate.

One of the main features of the Shanghai EV Center of Excellence is the fully integrated, modular, end-to-end logistics solutions for finished vehicles and batteries. This comprehensive service suite includes:

• Domestic pickup with certified transportation service for export to/from various locations in China
• Certified EV-compliant warehousing managed by qualified teams specialized in handling all EV-related functions. Warehouses in different provinces can handle loading and unloading of lithium batteries as well as buyer consolidation for export
• Compliant multi-modal international transportation network for batteries and finished vehicles with end-to-end temperature and humidity monitoring for international transportation to global Inbound-to Manufacturing (I2M) plants and aftermarket distribution centers
• Storage and sorting solutions at arrival including last-mile delivery using DHL's transport network at destination countries and customs clearance

"Through our global team of experts, we collaborate with our customers to design compliant, cost-efficient supply chains tailored to their needs. For example, our Dangerous Goods (DG) specialists have worked with customers to ensure compliant movement of battery cells in line with relevant global and local dangerous goods regulations. We've also worked on rail solutions for delivering EV powertrains including last-mile delivery with sensor-tested humidity requirements. This is made possible as we use the combined knowledge of all our EV Centers of Excellence globally," Fathi Tlatli, Global Auto-Mobility Sector President at DHL CSI, added.

The Shanghai EV Center of Excellence is supported by DHL Global Forwarding's extensive network of 35 branches strategically positioned to optimize major gateways across China. It has a network of over 50 warehouses and cross-dock facilities with a strong presence in major commercial cities. This includes access to warehouse space to store and handle dangerous goods such as batteries and finished vehicles for import and export. It will also have a team of EV and DG experts working with customers to deliver the right solutions in an evolving landscape.

The EV Centers of Excellence also embody DHL's commitment to innovation, offering environmentally friendly logistics solutions and advancing clean technology in transport and warehousing. In the same vein, DHL Global Forwarding has also made strides in its sustainability efforts in China. It has a fleet of over 250 electric and hydrogen vehicles in China, operating for a monthly mileage of more than 320,000 miles.

In China, DHL Express had achieved 26% fleet electrification by 2023, and has welcomed over 50,000 GoGreen Plus customers by now. It also introduced a fleet of hydrogen energy trucks with local partners for long haul operations in Shanghai, making China the first among the 220 countries and territories within DHL Express network to do so.

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