Strengthening the position of battery production
The economy is currently facing highly challenging times shaped by volatile markets, geopolitical uncertainty, and ever-increasing changes at very short notice to the already complex boundary conditions that dominate international trade. Now is therefore precisely the right time for strategic and decisive actions as well as clear decision-making in politics and business – after all, in the global race for future technologies like battery production, European solidarity and togetherness is crucial, particularly when it comes to competing with China.
Headlines in recent weeks have underlined the urgency of all this, with news of falling battery prices caused by Asian overcapacity, the collapse of Swedish battery manufacturer Northvolt, and Porsche’s surprising decision to halt battery production at Cellforce highlighting quite how fragile the European battery industry is at the moment. The potential effects of the increased export controls now being imposed by China on high-performance batteries as well as on the production machinery and lines used to manufacture them are particularly perilous. These new controls are threatening to massively disrupt the entire global supply chain and are putting European manufacturers under increasing pressure. These developments are warning signals – and they clearly show that Europe is running the risk of surrendering another key technology.
Politics, society, and the media now have to recognize the strategic importance of battery production for Europe, particularly in the context of the future of the automotive industry, the energy transition, and in terms of geopolitical resilience. Strong support is needed so that the full economic potential of this industry can be exploited. In view of these developments and growing dependencies, Maschinenfabrik Gustav Eirich GmbH & Co KG urgently warns against wasting this opportunity.
A glance at the production capacities for battery cells in Europe reveals an alarming situation – of the around 94 gigawatt hours available in 2024, a full 97 percent were controlled by companies from outside of Europe, e.g. from China, South Korea, or the USA. Europe is therefore hugely dependent on foreign manufacturers and runs the risk of losing its technological sovereignty in a pivotal area that is vital for the future (source: VDMA 2025).
“It would be fatal to hand over another major industrial competence to other countries,” stresses Stephan Eirich, CEO of Eirich. "Europe must take action now – not only in battery cell production, but along the entire value creation chain. This also includes machinery and plant manufacturing as an indispensable part of battery production.”
End of the road for the internal combustion engine
The decision was taken a long time ago, but it is now being exploited for political aims
Batteries are the most important and – at the same time – the most expensive component in electric vehicles. In fact, batteries account for around 30% of the value added, which makes them a crucial strategic and competitive factor for future mobility. Media discussions continue to suggest that an open debate is still taking place about the 2035 ban on diesel and petrol cars. However, this is a decision that has long been taken at EU level, and the EU’s drive for technology openness is already anchored in it. It has been clear for a long time that electric cars are set to win the battle and become established as the most important – and most widely accepted – popular technology. Only a small group of major European corporations is opposed to this development – supported by political forces who represent backward-looking interests. The fact that Katherina Reiche, the German Federal Minister for Economic Affairs and Energy, has positioned herself as a mouthpiece for the fossil fuel lobby on this issue is a fatal signal against innovation and new economic opportunities. Eirich already took a clear stance early on, among other things by signing the “Take Charge EU” open letter together with other European business leaders. Europe now needs dependability and a focus on the future – not an ideologically motivated rearguard action. Domestic political dynamics must not be allowed to cause an area like battery production, which is of such great strategic importance for the future, to fall behind. Eirich also expressly supports the position of the German Engineering Federation VDMA, which has pointed out the risks associated with a lack of sufficient political support. Without targeted investments and industrial policy measures, Europe is at a real risk of falling behind – with far-reaching consequences for the economy, jobs, and technological sovereignty.
Eirich’s contribution to European battery production
It will only be possible to keep pace with the global competition if domestic suppliers are integrated in efforts to make battery production more resilient across Europe.
As one of the technology leaders in the supply of mixing technology and process solutions, Eirich supplies essential components for the production of battery materials – in particular for the production of cathodes and anodes. With high-precision mixing systems based on decades of experience, Eirich helps European battery cell and material producers to improve quality, efficiency, and sustainability in production. One thing that sets Eirich apart is its internal Test Center, where customers can carry out large-scale tests and material qualifications. A state-of-the-art battery production line known as “Giga Odenwald” was already built here several years ago. A single mixer is enough to handle 2 GWh of production, and in a larger gigafactory this would simply be multiplied accordingly – providing a clear indication of the industrial scalability of the Eirich technology. With the relaunch “Giga Odenwald 2.0,” Eirich is investing millions in a major expansion of the project. Unlike the politicians, the SME is making a direct contribution that will help strengthen the battery value creation chain in Europe, and it is pushing ahead with its own development plans and several self-financed pilot lines
A plea to politicians
Eirich is calling on the German Government and the European Commission to set out some clear signals in terms of industrial policy. Funding programs, location incentives, and strategic alliances are required to help shape machinery and plant manufacturing as the backbone of battery production. This is the only way for Europe to establish a sustainable, resilient, and competitive battery industry.
Battery production is more than just a technical topic – it affects the future viability of Europe in terms of electromobility, the energy transition, and other advanced technologies.
What we need now:
- A clear commitment from politics to the domestic economy – to recognize machinery and plant manufacturing as a strategic key industry
- Strong market surveillance – in order to protect against market distortion and to ensure greater transparency
- Skills shortages are real: 45 percent of companies believe that skills shortages are holding them back – the highest level this has been since reunification (Olaf Wortmann, VDMA 2023) è we therefore need forward-looking strategies to secure skilled labor for the future.
- Networking: Companies along the entire value creation chain within the European Union need to pull together to strengthen the battery industries
> a targeted approach to the development and construction of gigafactories with European technology involving everyone from automotive OEMs to plant and component suppliers is required. - Reduce bureaucracy and make investments easier
> faster approval processes for production plants and simplified access to financial support