Industry Associations Demand Continued Publicly-Funded Battery Research

Germany's Federal Government aims to cut back on battery research. However, imposing austerity on this vital area sends a distressing signal to both businesses and society, warn leading industry associations VCI, VDMA, KLiB and ZVEI.

The Association of the Chemical Industry (VCI), the Association of German Machine and Plant Construction (VDMA), the Lithium-Ion Batteries Competence Network (KLiB) and the Association of Electrical and Digital Industries (ZVEI) vehemently criticize the Federal Government's proposed downsizing of battery research. They appeal to the members of the Bundestag Committee on Education, Research and Technology Assessment to approve the CDU/CSU Parliamentary Group’s motion "For Robust Battery Research in Germany", in turn urging the Federal Government to reconsider their downsizing plan. It is necessary to highlight that publicly-funded battery research is an integral component of research and innovation pipelines.

The refusal of funding will halt publicly-supported joint initiatives in the pre-competitive environment between research institutions and industries – notably small and medium-sized industries. "Curtailing public battery research vastly compromises companies' innovative vigour," warn the associations. Instead of tightening the purse strings, there should be ample expansion of publicly-funded battery research anchored on a long-term reliable basis. Otherwise, the coalition agreement's objective of turning Germany into a hub for battery cell research, manufacturing, and recycling wanders into a distant horizon.

Publicly-Funded Battery Research For Economic Resilience

As per a current McKinsey study, battery technology will considerably shape the global economy by 2040. In Asia, particularly China, a fully-fledged, experienced and financially robust battery ecosystem has emerged, according to the associations. German industry is almost entirely reliant on this ecosystem, which has severe implications for economic resilience and technological sovereignty in Germany. Job roles, which can counterbalance job loss amid transformation, are lost since the value creation – especially in this key future technology – takes place at other global sites. Incising the budget here sends a devastating signal to the economy and society. Instead, the Federal Government and industry should jointly develop a comprehensive strategy for establishing a competitive battery ecosystem, demand VCI, VDMA, KLiB and ZVEI.

Downsizing of Battery Research has Already Begun

The budget draft 2025 of the traffic light coalition has already triggered a reduction in battery research at academic institutions, owing to an uncertain future funding situation. Consequently, there can be no contract extensions, creation of new contracts or unimpeded progression of ongoing research projects. Moreover, research establishments are losing their scientific offspring due to the lack of prospects in this research field. The shortage of skilled workers is intensifying. Experienced trainers are migrating, and technology transfer through collaborations, human resources and startups is coming to a standstill.

These far-reaching consequences impact all industries involved in the value chain: chemical companies, machinery and plant construction, cell manufacturing and all sectors whose products depend on the performance, pricing and availability of batteries. This includes electric vehicles such as cars, trucks, buses or e-bikes, stationary storage, drones, power tools or robots. Publicly-funded joint projects in the pre-competitive environment between research institutions and industries, particularly small and medium-sized industries, are grinding to a halt.

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