Germany’s Battery Production Sets New Record in 2025 Driven by EV Demand
Record Growth in German Battery Production and Market Dynamics
June 16 (Reuters) - Production of batteries in Germany reached a record high in 2025, trade group ZVEI said on Tuesday, driven by electric mobility and energy storage markets.
Key Production Figures and Market Drivers
• Battery production increased 11% to €8.1 billion ($9.40 billion) from a low point in 2024
Lithium-Ion Battery Output
• Output of lithium-ion batteries used in e-mobility rose by nearly a third (+28%) to €4.6 billion
Growth Factors
• Rapid growth of electric mobility and high demand in the energy storage market were key drivers
• ZVEI expects both trends to support further growth in the market this year
Market Volumes and Historical Context
• Market volumes, describing production plus imports minus exports, grew 9% on the year to €22.4 billion, inching closer to the level of record year 2023, when they stood at €24.3 billion
Industry Challenges and Strategic Recommendations
Competitiveness and Resilience
• "The supply of batteries is not currently at risk, but the competitiveness and resilience of the battery ecosystem in Germany and Europe certainly are," said Christian Rosenkranz, chairman of the ZVEI battery section
Policy and Investment Needs
• He called for reducing dependence on others and strengthening competitiveness through investment incentives, as well as more practical trade policy tools against unfair trade and subsidy practices
Import Dependency and Supply Chain Concerns
China’s Role as Main Supplier
• In terms of imports, China remains the main supplier of batteries to Germany, with a volume of around €11 billion in 2025 (+25%) - "a trend that has been on the rise for years"
European Dependence on Asian Supply Chains
• Particularly for lithium-ion batteries, Europe is highly dependent on Asian supply chains, the statement said
Exchange Rate Information
($1 = 0.8615 euros)
(Reporting by Ersen Hakan, writing by Linda Pasquini, editing by Friederike Heine)
