The hottest Germany has invested 1billion euros to

Germany has invested 1billion euros to support electric vehicle battery enterprises

according to reports, three sources recently revealed that the German government has arranged 1billion euros (about US $1.2 billion) to support a consortium seeking to launch battery cells. At the same time, Berlin also plans to support research and development institutions that develop the next generation of solid-state batteries

the above decision is expected to be announced this week. The above measures are aimed at reducing the manufacturer's dependence on Asian unit suppliers, while preserving relevant jobs in Germany during the transformation of internal combustion engine production

it is pointed out that the German government usually takes a non interventionist attitude towards the relevant decisions of enterprises, and this time it is an unprecedented move for the government to promote the formulation of industrial policies. On the other hand, the decision of Berlin is also one of the strategies of the whole Europe to build a battery production alliance. The purpose of the above alliance is to compete with industry leading countries such as China, Japan and South Korea

for Germany, it is particularly important to ensure that local enterprises can get involved in the electric vehicle supply chain. From an economic point of view, it also depends on the success of the German automobile industry

however, the German government's promotion of the automotive battery industry came too late. We should know that Asian market leaders are constantly expanding production, and some experts pointed out that the automotive battery market has faced the risk of oversupply, which may become an obstacle to the large-scale production of batteries by European new market participants

from the perspective of German Chancellor Angela Merkel, the introduction of the above measures at this time is not without suspicion of canvassing votes. At present, undercurrents are surging in the ruling coalition led by Merkel, and the eastern region of Germany will usher in three general elections next year. Merkel certainly hopes to pool all efforts to help Germany survive in the era of electric vehicles

Christian Hattie, Deputy Minister of economy of Germany, said in an interview: in the automotive sector, we are facing relatively concentrated risks. The German auto industry is too dependent on internal combustion engine models, so the government wants to help the industry have more significant diversity. He previously said that the German government was discussing the issue of providing support to a battery unit factory with a number of car companies and other European governments

Christian Hattie also said: there are examples that may be transformed into reality in the raucic region of Germany, which may require the cooperation of Germany and Poland. It is worth mentioning that Christian Hattie is currently the coordinator of the German government's East German affairs and small and medium-sized enterprise policies

he pointed out that one thing is very clear, that is, if such a grand plan is planned, the German government cannot ignore the role that East Germany can play in it. People in East Germany have a high degree of acceptance of the German government's policies on the research, development and production of electric vehicle batteries

according to people familiar with the matter, the enterprises that discussed with German Economy Minister Peter altemaier about the construction of electric vehicle power, the reason for this failure is the electromechanical phase failure pool factory, including German battery manufacturer Valta, chemical giant BASF and Ford Werke GmbH, a subsidiary of Ford in Germany

a BASF spokeswoman said that the company would attend a meeting with Peter altmer next week, while Valta and Ford declined to comment

the batteries produced by Valta are mainly used in hearing aids and large-scale energy storage systems involving solar energy. Valta said last month that it was studying the production of large lithium batteries, and it was also having intense discussions with relevant market participants

is it too late

on November 16 local time, the supervisory board of Volkswagen Group will discuss the strategy of electric vehicles and battery cells at a meeting. Volkswagen had previously said that it was studying the production of battery cells at its plant in salzgit to improve the profitability of tons of steel. A source told that members of the Volkswagen supervisory board would discuss the cooperative alliance between Volkswagen and SK innovation, a Korean battery unit manufacturer

some analysts pointed out that in the field of electric vehicle batteries, Europe has lagged far behind Asian enterprises, at least the latter's existing technology has been significantly ahead of Europe

Boston Consulting Group, for example, predicts that the global battery unit capacity will be about 40% higher than the market demand in 2021, which will put great pressure on practitioners in product pricing, and it will be very difficult for new market entrants to make profits

LG Chemical from South Korea has decided to supply electric vehicle batteries produced in Poland to some German car companies, while Samsung SDI and SK innovation plan to set up factories in Hungary by turning the operating handle 7 in 2 to make the force value nixie tube show the experimental force of the tested spring

Ningde times, the world's largest electric vehicle battery manufacturer, will build its first European factory in eastern Germany. At the same time, Ningde times also signed a supply agreement with BMW, and the cooperation between the two sides is also welcomed by the German government

however, Merkel also told the leaders of German enterprises that the development of German battery units is extremely important to ensure Germany's position in the automotive industry

for many years, the leaders of the German automotive industry have been ambivalent about promoting the development of electric vehicles, and they prefer to focus on the research and development of diesel engines. But at present, when making diesel engines meet more stringent emission standards, German auto companies face great challenges

although BCG's view is that there will be an oversupply in the electric vehicle battery market, analysts from McKinsey and the Fraunhofer Institute in Germany believe that the market has left room for European participants to develop. When car companies increase the output of electric vehicles, the market demand for batteries will exceed the supply

German car companies have issued warnings that some jobs in the industry may disappear. The reason is that the production time of electric vehicles has been shortened. On the other hand, some production jobs will be transferred to overseas battery manufacturers. The German automobile industry association previously said that the ban on internal combustion engine models, which will take effect in 2030, will pose a threat to 436000 jobs in automobile enterprises and their suppliers

establishment of European battery alliance

after realizing the importance of developing independent battery industry for employment and corporate profits, the European Commission launched its own European battery Alliance (EBA) in 2017, but now only with the substantial growth of China's car ownership, northvolt from Sweden is considered to be the only serious competitor

as one of the boosting measures of the German government, German Economy Minister Peter altemaier is discussing cooperation with German and European enterprises and neighboring countries. He also coordinated between Germany and the European Union to solve any problems of state subsidies and antitrust

Peter altmer is expected to announce more details about his battery cell planning at the meeting starting on November 12 local time. The meeting will last for two days, and EU energy Commissioner sevkovic will also participate in the meeting

two sources familiar with the above plan said that the 1billion Euro funding plan of the German government will help build the first battery unit production plant in Germany, which is likely to be located in western Germany. Berlin intends to support the construction of the second factory, which is likely to be located in the raucic region near the border between Germany and Poland

a spokeswoman for the German Ministry of economy said that Peter altmer was discussing with all relevant parties, but no decision had been made

another source told that in addition, the German government intends to invest up to 500million euros to jointly fund the construction of a research and development plant, which aims to help German enterprises occupy a priority position when solid-state batteries are about to be put on the market in large quantities

in the next few years, lithium-ion batteries may be replaced by solid-state batteries, which are considered to have greater energy density and lower cost

people familiar with the matter said that the site selection of the above-mentioned R & D plant has not been decided yet, and the German government will soon start the site selection bidding process

the spokesman of the German Ministry of science pointed out that the German government intends to combine leading R & D institutions with the private sector to promote the development of solid-state batteries. The spokesman said that the enterprises currently involved in the above-mentioned R & D network (known as festbatt) include Valta, BASF, Volkswagen, BMW, Continental, ThyssenKrupp, SGL carbon, a carbon fiber enterprise, and Umicore, Coperion and Heraeus, a Belgian material enterprise

at present, the battery units used by German car enterprises are mainly supplied by Asian enterprises such as Ningde times, LG Chemical, Samsung SDI, etc. As the world's largest automotive supplier, Bosch's decision may reflect the difficulties that German enterprises will face in the development of electric vehicle batteries. Bosch has chosen not to produce lithium-ion battery units by itself, saying that the production cost of this product is too high

Hans Martin Henning, an electric travel researcher at the Fraunhofer Institute in Germany, is not so pessimistic. He pointed out that the transformation from lithium-ion batteries to solid-state batteries may make European suppliers no longer rely heavily on rare earth resources