Decisive action needed to prevent Germany ‘losing more ground’ as a battery maker

Frankfurt — Battery output and trade in Germany dropped sharply in 2024 amid a slowdown in the roll-out of electric cars and competition from Asian producers, electronics industry association ZVEI said on Tuesday, asking policymakers to help stem the decline.

Market volumes, describing production plus imports minus exports, in the industry fell 16% in 2024 to a total value of €20.5bn, mostly due to weaker demand for lithium-ion batteries used in e-mobility.

“Decisive political action is needed to prevent Germany from losing further ground as a battery manufacturing location,” said Christian Rosenkranz, chair of ZVEI’s battery section and managing director of member firm Clarios Germany.

He demanded more competitive energy costs, faster approval procedures, cuts to red tape and reliable and targeted funding, especially in research.

The areas are being addressed by the new coalition government, which is trying to boost economic growth and overcome setbacks of recent years with the help of a €1bn tax cut and spending packages.

Production values of all batteries fell 5% last year to €7.3bn, exports dropped by 3% to €7.9bn, while imports fell 15% to €21.2bn, ZVEI statistics showed.

Looking ahead, the underlying expansion of electric vehicles, as the transport sector is being decarbonised, should be ongoing, making a future improvement in li-ion batteries sales likely, said ZVEI.

“The megatrends of electrification are intact,” said Gunther Kellermann, managing director of the battery section, in a press call.

“There are first signs of a recovery in 2025 so that in 2026, I should be able to present a more positive picture than today.”

ZVEI executives also said that defence technology, against the background of geopolitical developments, has emerged as an increasingly dynamic area of battery demand.

Reuters