Industry associations warn: Germany and Europe at risk as a battery location

Open letter to Federal Chancellor Merz: Affected industry calls for industrial policy strategy for the future of batteries

17-Oct-2025
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Five business associations have written an open letter to Federal Chancellor Friedrich Merz and several federal ministers: They see the battery location and therefore the battery ecosystem in Germany and Europe at risk. The Competence Network Lithium-Ion batteries KLIB, the German Chemical Industry Association VCI, the German Association of the Automotive Industry VDA, the German Engineering Federation VDMA and the German Electrical and Digital Manufacturers' Association ZVEI are warning that the further development of the battery ecosystem, which is still in its infancy, is at risk of coming to a standstill.

The five associations have now presented a joint eight-point plan with proposals for better conditions in Germany and Europe: What is needed instead is a joint and long-term strategy at German and European level, clarity and commitment, a holistic understanding of the battery supply chain, better site conditions, fair competitive conditions, joint risk-sharing, securing raw materials and promoting research and development. The consortium welcomes the German government's new high-tech agenda, which significantly strengthens battery research. However, a joint, long-term strategy supported by politics and industry for the industrialization of battery technology and the development of a competitive battery ecosystem is lacking.

Such a battery ecosystem could generate the urgently needed growth potential: a global market of around 155 billion euros is expected for lithium-ion batteries by 2030, of which around 54 billion euros will be in Europe.

Insolvencies, the abandonment of business activities in the battery sector - especially among small and medium-sized companies - and the withdrawal from subsidized projects are on the rise. This worrying development is increasing dependence on non-European battery materials and battery cell manufacturers. It illustrates once again that high energy prices, excessive bureaucracy and an uncompetitive tax and duty system are making it difficult to establish and expand the battery value chain.

Battery technology is considered to be one of the key future technologies of the 21st century. The competitiveness of numerous products - from electric vehicles, power tools and e-bikes to stationary energy storage and military applications - depends on high-performance batteries. KLIB, VCI, VDA, VDMA and ZVEI make it clear: a strong battery ecosystem and a competitive battery industry are crucial for the future viability of Germany and Europe as a high-tech location in order to ensure strategic sovereignty. At the same time, it can preserve jobs and, above all, create new ones.

Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.

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