German battery production hits record as China reliance grows

Battery production in Germany reached a record high in 2025, driven by rising electric vehicle (EV) output and strong demand in the energy storage market, the German Electrical and Digital Industry Association (ZVEI) said on Tuesday.

Overall battery production climbed 11% to a record €8.1 billion ($9.4 billion), the ZVEI said in Frankfurt.

Lithium-ion battery output grew particularly strongly, rising by more than a quarter - up 28% - to €4.6 billion.

Both trends - increased EV production and high storage market demand - are expected to continue driving the battery market this year, the association said.

At the same time, the ZVEI warned of Germany's growing dependence on China.

Battery imports from China rose by a quarter in 2025 to around €11 billion. China remains the leading supplier of batteries to Germany, ahead of other European countries such as Hungary, a trend that has been rising for years, the association said.

The dependence on Asia is particularly pronounced for lithium-ion batteries.

"If these are interrupted, or individual regions suddenly halt their exports entirely, it becomes clear how vulnerable we are, especially in critical sectors such as defence or data centres," said Gunther Kellermann, managing director of the ZVEI's battery industry association.

Domestic battery production is an important building block for the transition to electric vehicles and a strategic policy goal.

The ZVEI said the industry supports the European target of covering at least 40% of annual battery cell demand from domestic production by 2030. It welcomed the increased battery research funding under the federal government's "High-tech Agenda."

Rather than targeted purchase subsidies for electric vehicles, what is needed is lower electricity prices for everyone, Kellermann said.

The battery industry stands at a crossroads, he said.

"If we do not now succeed in creating good framework conditions and fair competition, and in developing a strategy for our battery ecosystem, we could irreversibly lose industrial battery production on the European continent," Kellermann said.