Business opportunities for European manufacturers

According to the study, the global battery equipment market volume will cumulatively reach 250 to 280 billion euros by 2035. "The modernization of existing systems, which will account for around 135 billion euros of this total investment, is particularly attractive. This is where European companies can play to their strengths: Precision engineering, digital integration and regulatory expertise," says Dr. Sarah Michaelis, Head of the VDMA Battery Production department.

In February 2024, an initial VDMA study highlighted the strategic importance of European mechanical engineering for battery production. The new study follows on from this and shows The phase of exaggerated expectations is now being followed by reality, with viable projects and good opportunities for specialized suppliers. "While Asian factory equipment suppliers focus on mass production, European mechanical engineering companies operate as a specialized ecosystem. 65 VDMA members alone are active in electrode production. This specialization enables modular, interoperable systems - and therefore greater flexibility for customers," explains Hartmut Rauen, Deputy Managing Director of the VDMA.

Realistic plans replace hype

The new study also documents that the hype in battery production and some canceled major projects have now been followed by a more realistic analysis, including in the European gigafactory industry. While 1.6 terawatt hours of production capacity were announced for 2030 in Europe at the end of 2023, this figure had fallen to 1.1 terawatt hours by 2025. This consolidation is taking place in a market environment characterized by Asian dominance: China controls 90 percent of global cell production. Europe is now responding to this with subsidy programs, tax breaks and raw materials diplomacy. 50 percent of the announced European production capacities are to come from players in the EU, creating prospects for European solution providers.

The study also shows that cell manufacturers are already looking for partners to modernize their systems. They not only need hardware, but also functioning production systems. "Cell manufacturers worldwide are recognizing that specialist expertise is crucial when it comes to process optimization - especially in the critical phase between commissioning and profitable production," emphasizes Dr Sarah Michaelis. "European mechanical engineering companies bring exactly this to the table: in-depth process know-how, seamless integration across all 16 production steps and the ability to implement highly complex requirements in a timely manner. A large number of European cell assembly companies have expertise in several production steps - a clear advantage over standardized individual solutions," adds Matthias Möhrke, expert for battery machine construction at Porsche Consulting.

Politics must play its part

Politicians must now take targeted action to secure Europe's battery value chain geopolitically and strengthen it technologically. "This includes the establishment of effective risk monitoring, the efficient design of industrial funding instruments with a clear focus on European value creation, the reduction of dependencies and increased investment in research and international partnerships. At the same time, the EU must achieve technological sovereignty through standardization and strategic scaling. Only with a clear, EU-wide focus and determined implementation can Europe survive global competition and successfully shape the transformation, concludes Hartmut Rauen.