Germany’s battery production rebounds as industry warns of risks

Battery production in Germany returned to strong growth in 2025, according to figures released by Verband der Elektro- und Digitalindustrie (ZVEI), a German industrial association. It said the country’s battery industry is recovering after a downturn in 2024.

Based on revenue volumes, lithium-ion battery production rose 28% year on year to €4.6 billion ($5.3 billion) in 2025. Across all battery chemistries, production reached a record €8.1 billion, up 11% from the previous year. Germany’s total battery market volume climbed to €22.4 billion, just below the €24.3 billion peak recorded in 2023. Compared with 2024, the market expanded by about 9%, driven primarily by lithium-ion batteries.

ZVEI said the ramp-up in electric mobility and sustained demand for battery energy storage systems were the main growth drivers. On that basis, the association expects the German battery market to continue expanding this year. It defines the market as domestic production plus imports minus exports.

Imports also increased, underscoring Germany’s reliance on overseas supply chains. China remained the largest source of battery imports, with imports from the country rising 25% to about €11 billion in 2025. Within Europe, Hungary was Germany’s largest battery supplier, accounting for €3.5 billion of imports. Total battery imports reached about €22 billion, up 4% year on year.

Export volumes were significantly lower and declined by 2.5% to €7.8 billion. About 70% of German battery exports went to other European markets, followed by the Americas with 14% and Asia with 12%. Exports to Asia recorded the steepest decline, falling 34% compared with the previous year.

Against this backdrop, ZVEI warned of the industry’s dependence on Asian supply chains.

Gunther Kellermann, managing director of ZVEI’s battery division, said disruptions to those supply chains or sudden export restrictions could expose vulnerabilities in critical sectors, including defense and data centers. He said the industry supports the European Union’s Net Zero Industry Act target of manufacturing at least 40% of Europe’s annual battery cell demand domestically by 2030.

Christian Rosenkranz, chairman of ZVEI’s battery division and managing director of Clarios Germany, said battery supplies are not under immediate threat, but warned that the competitiveness and resilience of the German and broader European battery ecosystem remain vulnerable. He argued that Europe must reduce its reliance on external supply chains by creating stronger investment incentives and equipping itself with more effective trade tools to counter unfair competition and subsidized imports.

Kellermann also urged policymakers to act quickly, warning that Europe risks losing battery manufacturing capacity permanently if it fails to establish favorable conditions and a long-term strategy for the sector.

He welcomed the German government’s increased support for battery research through its Hightech Agenda but said industry needs greater planning certainty, including lower electricity prices and more flexible energy market models that incorporate storage technologies.

From pv magazine Deutschland