Cell manufacturing in Germany is approaching

Cell manufacturing in Germany is approaching

A battery cell production for electric vehicles in Germany has become somewhat more likely. A call for funding from the Federal Ministry of Economics was followed by 30 companies, reportedly including consortia of German companies with French and Polish partners. More well-known names like Varta and BMW want to apply for funding. The federal government had promised one billion euros in subsidies for this purpose. “We have come a big step closer to this goal,” declared Federal Minister of Economics Peter Altmeier (CDU). Germany and Europe needed an “innovative and environmentally friendly battery cell production.” According to Altmeier, batteries have an “outstanding economic importance for electromobility and energy storage as part of the energy transition.” In the automotive sector, battery cells account for around one third of value creation, he further argued for local cell production.

“Our call for funding to establish battery cell production is a complete success and reflects the pioneering spirit in the industry,” the minister stated.

More than 30 companies from the entire value chain had expressed their interest in this. The range extends from automobile manufacturers and suppliers, battery manufacturers, chemical companies to raw material and recycling companies, also with support from research institutes.

“If we want to maintain good jobs in the industry and create new ones, we need to be leading in innovative battery cell production.”

The project outlines submitted in the two-stage process are now being “reviewed with high pressure,” promises the ministry. Subsequently, the companies are to further concretize their applications in a second stage. This will also involve the formation of consortia, said Altmeier. At the same time, they want to discuss the funding with the European Commission so that “projects can start as soon as possible.”

The Bosch supplier group had abandoned plans for battery cell production last year for economic reasons, estimating a relevant market production would require an investment sum of 20 billion euros. Daimler is taking a different approach, creating a network of eight battery productions on three continents and investing a billion euros in the plants. Additionally, they have secured access to battery cells for their own automobiles until 2030 for 20 billion euros.

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