Germany Battery Market Forecast 2024-2032

Germany Battery Market Forecast 2024-2032

The Germany battery market is set to progress with a CAGR of 16.09% across the forecasting years. While the base year considered for the market studied is 2023, the forecasted period is from 2024 to 2032.

MARKET INSIGHTS

The demand for electric vehicles (EVs) in Germany has surged significantly, emerging as a key driver for the battery market’s growth during the forecast period. The number of new electric car registrations in Germany has also seen a marked increase in recent years. Germany, renowned for its robust automotive industry, is witnessing a significant surge in demand for electric vehicles as consumers increasingly prioritize environmental sustainability; according to industry sources, in the first four months of 2022, 105,847 new electric cars were registered. Projections also indicate that the electric vehicle industry in Germany is on track to achieve unit sales of 1,721,000 vehicles by the year 2028. This substantial demand for electric vehicles is anticipated to further drive the adoption of various types of batteries, positively influencing market growth.

Additionally, Cylib, a sustainable end-to-end battery recycling firm, successfully closed a €55 million Series A funding round in equity financing in May 2024. The round was co-led by World Fund, a leading European climate tech VC, and Porsche Ventures, the venture arm of Porsche AG. This funding marks the first venture co-investment from industrial giants Porsche and Bosch in Germany.

It represents the largest round ever raised by a European battery recycling company, achieved within less than 24 months since Cylib began operations. The funds will enable Cylib to industrialize its proprietary technology further, already utilized by leading OEMs and battery manufacturers. Furthermore, operations are set to scale up at a brownfield industrial facility in Germany, which has already been secured for this purpose.

Likewise, in January 2024, Corre Energy, a Dutch energy storage company, and Eneco entered into a partnership to co-develop and co-invest in a compressed air energy storage (CAES) project in Germany. This project is set to have a power-generating capacity of 320MW. As part of the agreement, Eneco will acquire a 50% stake in the project.

Germany is also experiencing a wave of new battery production facilities and factories. For example, Northvolt, a battery manufacturing startup, announced the opening of a new battery cell gigafactory in Germany. The company aims to replicate the ‘gigafactory’ concept, producing batteries at the ‘gigawatt-hour’ scale for electric vehicles. Similarly, CATL announced the commencement of battery production in Germany, targeting an output of 8 gigawatt-hours of battery cells at their new plant. These developments are expected to significantly contribute to the market growth in Germany during the forecast period.

SEGMENTATION ANALYSIS

The Germany battery market is segmented into type, technology, and application. The technology segment is further categorized into nickel-zinc (NiZn) battery, lead-acid battery, lithium-ion battery, sodium-sulfur (NAS) battery, nickel-cadmium battery, zinc-manganese dioxide battery, flow battery, nickel-metal hydride battery, small sealed lead-acid battery, and other batteries.

The other batteries segment includes alkaline, silver oxide, solid state, and sodium-ion batteries. Significant research and development activities by market players and educational institutions worldwide are anticipated to drive market growth in the coming years. For example, in 2022, Nissan Motor (a Japan-based automaker) announced its collaboration with the National Aeronautics and Space Administration (NASA) and the University of California San Diego to commercialize next-generation cells. Nissan revealed a prototype factory for all-solid-state batteries, which promise to revolutionize electric vehicles by offering three times faster charging and twice the range compared to previous models.

Additionally, in the same year, Urban Electric Power and Alchemy Industrial partnered to launch Ohm Core, a residential energy storage system based on rechargeable alkaline batteries. These research and development activities are expected to increase the adoption of various battery types for different applications, thereby promoting market growth during the forecast period.

COMPETITIVE INSIGHTS

Leading companies operating in the Germany battery market include BYD Company Ltd, Duracell, Exide Technologies, Johnson Controls Inc, etc.

Duracell Inc, owned by Berkshire Hathaway, is an American manufacturer of specialty cells, alkaline batteries, and smart power systems. Considered the world’s leading manufacturer and marketer of high-performance lithium coins, rechargeable batteries, and other specialty cells, Duracell powers various devices, including baby monitors, flashlights, smoke detectors, game console controllers, and toys. The company employs over 3,300 people globally and has regional headquarters in the United States, EMEA, and Asia.