After reporting strong results for last year, trade association ZVEI warned Tuesday that battery production and commerce in Germany will depend on whether battery-electric automobiles can recover.
“I can’t say whether we have overcome a decline early in the year amid the scaling back of electric vehicle support at the end of 2023,” said ZVEI battery managing director Gunther Kellermann.
“At the moment we are seeing a positive reversal…but I don’t dare a forecast,” he told reporters by phone.
In 2023, industry market volumes rose 32% to 23.2 billion euros ($24.84 billion), largely owing to lithium-ion batteries used in e-mobility.
Germany canceled EV subsidies after spending 10 billion euros between 2016 and 2023 due to budget cuts.
Official statistics reveal that EV share fell to 12% last month from 14.3% in 2023.
In addition to price issues, analysts say buyers are unsure if EVs match their range and safety needs.
Li-ion batteries, used in electricity storage, medical equipment, and smartphones, made up 81.5% of the market volume and grew 58% year-over-year, making them vital for ZVEI.
It helped the electric vehicle company catch Tesla as the world’s top EV seller.
The ZVEI battery section chairman, Christian Rosenkranz, said policymakers must enhance EV charging infrastructure, key raw materials supply, as Germany and Europe depend on overseas lithium and cobalt, and cheaper energy.
He also advocated for less bureaucracy and more sodium-ion battery research to enable lithium independence.
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