German Battery Production on a Growth Trajectory

June 17, 2026

Source: E & M powernews

Battery production in Germany peaked in 2025. At the same time, concerns are growing about the country’s heavy reliance on Asian supply chains.

The German battery industry experienced a significant growth spurt in 2025. The production value of lithium-ion batteries rose by 28 percent year-over-year to 4.6 billion euros. Across all battery chemistries, the production value rose to 8.1 billion euros, reaching a new all-time high. Following a weaker year in 2024, the industry is thus continuing on its growth trajectory. The figures, which have now been published by the German Electrical and Digital Industry Association (ZVEI), cover both batteries and battery cells.

This development is driven primarily by the dynamic ramp-up of electric mobility and the persistently high demand for stationary energy storage systems. Both segments are also expected to be key growth drivers for the current year. Against the backdrop of the expansion of renewable energies, storage technology is becoming increasingly important for stabilizing energy systems and making them more flexible.

Overall, the German battery market also performed well. With a volume of 22.4 billion euros, it was about 9 percent above the previous year’s figure and once again approached the record level set in 2023. Lithium-ion batteries were largely responsible for this development.

Despite the positive market data, the industry sees the competitiveness of the European battery ecosystem under pressure. According to the ZVEI, China remains Germany’s most important supplier, with imports totaling around 11 billion euros. Imports from China rose by 25 percent in 2025, while imports from other European countries declined. In total, Germany imported batteries worth around 22 billion euros. These were primarily cells, while the country is relatively well-positioned in the domestic production of modules. Exports of German batteries declined slightly by 2.5 percent to 7.8 billion euros. Europe remains the most important export market, accounting for just under 70 percent of total exports. The decline in exports to Asia was particularly pronounced.

According to industry estimates, there is a high degree of dependence on Asian supply chains, particularly for lithium-ion cells. Disruptions in supply could have significant consequences for strategically important sectors such as data centers, industrial applications, and the defense industry. Against this backdrop, the battery industry supports the goals of the European Net Zero Industry Act, which calls for significantly increased cell production within Europe by 2030.

The ZVEI also welcomes the German government’s increased funding for battery research. However, it notes that reliable long-term framework conditions are necessary for the successful development of a competitive industry. “The battery industry is at a crossroads: If we fail now to create favorable framework conditions and fair competition, as well as to develop a strategy for our battery ecosystem, we could irretrievably lose industrial battery production on the European continent,” warned Gunther Kellermann, Managing Director of the ZVEI Batteries Division.

Author: Günter Drewnitzky