Germany ramps up battery production

When it comes to using electricity to power our lives, storage is just as important a question as generation. Green electricity is a vital source of power in the fight against climate change. This makes batteries essential for cars and all kinds of equipment which is not connected to the grid. Scientists predict that the market for lithium ion batteries will grow by over 10% a year until 2027. The world’s ten largest battery manufacturers are all currently based in Asia: six in China and three in South Korea. But Germany is also investing large amounts in battery technology. Production is being ramped up at pace, and in a few years one in four electric cars produced in Europe could be powered by a battery from a German factory. 

The foundation for this is the success of the Federal Government’s umbrella strategy for battery research, says the Fraunhofer Institute for Systems and Innovation Research (ISI). According to the Federal Ministry for Education and Research, the concept provides a “strategic and policy funding foundation for all aspects of research into battery technologies with the goal of creating a competitive circular economy”. On one level, research involves developing more efficient technology. According to Fraunhofer ISI, though, the strategy also focuses on developing manufacturing processes at scale in order to develop larger capacities. 

In terms of capacity, batteries for electric cars are by far the largest mobile storage devices. Fraunhofer ISI predicts that annual manufacturing capacity for batteries in Germany will reach almost 400 gigawatt hours by 2030, which would provide batteries for 6.5 million cars at current levels. The leading manufacturers in Germany are the BASF chemicals group, the car makers Volkswagen, Mercedes, BMW and Porches, and other European companies such as Northvolt. The Federal Government is targeting support for consortia which involve several European states.