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Format
Discussion Paper
Date
11 September 2025

A strong European battery industry for a strong automotive sector

Nine insights for expanding battery production for electric mobility in Germany and Europe

Preface

Historic changes are underway in the automotive industry. Beyond transforming drivetrain technology, the transition to electric mobility is reshaping the industry. A key technology and strategic asset in a complex and competitive international market that lies at the core of these changes is the battery. 

Today, Asian manufacturers currently are market and technology leaders in battery production. China has outpaced other countries at all stages of the value chain, from securing raw materials and processing to mechanical engineering for cell production and recycling. This lead has become cemented by delays and even cancellations of construction projects for battery (cell) factories in Germany. At the same time, the effects of new US customs policies under Donald Trump’s second presidency show how quickly conditions in international trade can change. The European and German battery industries currently being established must prove themselves in this environment.

Key findings

  1. Batteries are the key technology for the successful transformation of the automotive industry
  2. Asia is the technology leader for batteries
  3. As a strong automotive location, Germany needs a strong battery industry in Europe
  4. European industry is dependent on cooperation with Asian manufacturers
  5. When optimising vehicle batteries, increasing energy density and reducing costs are key priorities
  6. Fair and strategic raw material partnerships strengthen Europe’s resilience
  7. Resilience requires raw material processing and component manufacturing in Europe
  8. Promoting European battery recycling boosts resilience and competitiveness
  9. A European industrial policy for batteries is needed

Bibliographical data

Authors
Leon Berks, Kerstin Meyer
Publication number
132-2025-EN
Version number
1.0
Publication date

11 September 2025

Pages
49
Suggested citation
Agora Verkehrswende (2025): A strong European battery industry for a strong automotive sector. Nine insights for expanding battery production for electric mobility in Germany and Europe

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