FRANKFURT (dpa-AFX): Driven by the rising number of electric vehicles, battery production in Germany has surged to record levels. Manufacturing output climbed 11 percent in 2025 to a peak of €8.1bn, according to the Association of the Electrical and Digital Industry (ZVEI) in Frankfurt. The production of lithium-ion batteries, in particular, saw robust growth of more than a quarter, rising 28 percent to €4.6bn.

The primary drivers were the sharp increase in domestic EV production and high demand in the energy storage market. Both trends are expected to continue fueling the battery market throughout this year.

At the same time, the electrical industry warned of a growing dependence on China. Battery imports from the People's Republic rose by a quarter in 2025 to approximately €11bn. China remains the leading supplier of batteries to Germany, ahead of other European nations such as Hungary, with the ZVEI noting that this upward trend has persisted for years.

Germany Vulnerable in Defense Sector

While Europe maintains a strong position in lead-acid batteries, its reliance on Asia for lithium-ion technology remains high. "If these supply chains are interrupted or if specific regions abruptly halt exports, it becomes clear how vulnerable we are, particularly in critical sectors such as defense or data centers," said Gunther Kellermann, Managing Director of the ZVEI Battery Division.

Domestic battery production is a vital component of the transition to electromobility and a strategic policy objective. The industry supports the European initiative to meet at least 40 percent of annual battery cell demand through internal production by 2030, the ZVEI stated. The association also praised the increased funding for battery research under the German government's High-Tech Agenda.

However, instead of isolated purchase incentives for EVs, Kellermann argued that lower electricity prices for all consumers and better protection against unfair trade and subsidy practices are required. The battery industry is at a crossroads. "If we do not succeed now in creating a favorable framework, ensuring fair competition, and developing a strategy for our battery ecosystem, we could irretrievably lose industrial battery production on the European continent," Kellermann said./als/DP/jha