With a host new production facilities underway in the country, Germany is poised to become Europe’s electric vehicle (EV) battery capital. As quoted by business newspaper Handelsblatt, the prestigious Fraunhofer Institute predicts a German production capacity of 500 to 600 gigawatt hours by 2030. That would be almost a third of production worldwide, according to figures from Bloomberg New Energy Finance.
According to estimates, EUR 60 billion could be spent on the production facilities throughout Europe, roughly half in Germany, and EUR 20 billion or more could be generated in annual revenues by 2030. And that figure could be doubled by 2040, thinks global engineering consultants Altran.
“Germany is the heart of the European car industry so here is where the highest volume of batteries will be bought and sold,” explains Germany Trade and Invest senior automotive manager Stefan Di Bitonto. “The establishment of battery factories here will be a multiplier for companies supplying the big providers.”
What sorts of businesses are likely to benefit from the multiplication effect?
“There are many firms and suppliers active in Germany that are already major providers in the added value chain of material processing and production of battery cells,” Peter Fintl, Altran director of technology and innovation, told Handelsblatt.
Handelsblatt lists six separate areas in which business opportunities will arise for providers: chemicals such as phosphorus, separators, battery management, cooling systems and sensors, casings, and packaging.
“Germany’s traditionally strong automotive supplier sector is course eager to take advantage of the EV battery boom in the country, but the massive ongoing changes in the industry mean plenty of opportunities for international companies with innovative electric mobility solutions as well,” says Di Bitonto.