Germany's costs to develop $ 1.2b, run EV batteries

Berlin Germany contributed 1 billion euros (1.2 billion dollars) to support the Consortium, looking for electric battery cells, and plans to fund research research for the next generation of solid state batteries. Reuters.

Proposed measures next week are intended to reduce the dependence of German manufacturers on the dependence of the Asian Electromechanical Power Plant (EV) battery suppliers and the protection of German jobs.

Berlin's push for industrial policy means generally a "hands off" approach to business decisions and is a European effort to link battery alliances against dominance of Chinese, Japanese and Korean firms.

The involvement of local companies across the automotive supply chain is especially important for Germany, since it is so economically dependent on the success of its car industry.

But Germany's car battery may be too late. Asian market leaders emerge out and some experts believe that threatening to install large-scale battery life for European starters.

For Chancellor Angela Merkel's firm governing coalition, the plan is also a way to show the electorate ahead of three elections in the next year's East Germany that it can take its own act to help Europe's largest economy in an electric car in the epoch.

"The automobile sector has the risk of concentrating, the industry is very light on the burning engine," said Deputy Minister of Economy Christian Hirte. Reuters. "The government therefore wants to diversify the sector."

According to Hirte, Berlin has negotiated with several companies and other governments in Europe to support the battery worker.

"There are possibilities, for example, in the region of Laosia, maybe cooperation with Poland," said Hirte, who is the coordinator of the government of East German Affairs and Small and Medium Enterprises.

"One thing is obvious: it is not possible to ignore East Germany, if there are plans for such mega projects, there is a lot of space and the population is huge."

The companies involved in the negotiations with the Minister of Economics Petre Altmer are German battery of VARTA Microbattery, German Giant BASF and Ford's German subsidiary Ford-Werke GmbH, three people know about this issue Reuters.

A spokesperson for the BASF said he will attend the meeting next week with Altaire. Varta and Ford refused to comment.

Varta specializes in batteries for hearing and large storage systems for solar power. He said last month that he had studied large lithium batteries and intensive discussions were active market participants.

FILE PHOTO: Worker joins battery on VW electronic golf power plant in transparent factory in Dresden


The Volkswagen supervisory board will consider the electronic car and battery life strategy at the November meeting. The German automaker said in the past that he studies the production of battery in the factory in Salzburg.

On Thursday, the source told Reuters that the forum would consider a far-off alliance with South Korea's battery life provider SK Innovation.

Some analysts say that Europe is far behind the Asian firms' race, at least with the current technology.

For example, the Boston Consulting Group (BCG), the global battery life output capacity by 2021 exceeds the demand by 40%, has massive pressure for the price and new emissions for new entrants.

South Korean LG Chem has been supplying some German carmakers with EV batteries made in Poland while Samsung SDI Co and SK Innovation plans to enter factories in Hungary.

China's modern Amperex Technology Ltd (CATL) has announced its first European factory in East Germany and Germany has breached BMW's deal.

But Merkel told businessmen that it was "very important" Germany also created its own battery cell to ensure the country's role in the car industry.

For years, the German automobile authors do not want to refuse electric cars, instead of focusing on diesel engines. But they are now threatening to use the combustion engines to comply with the strict emission rules that emerged after the embezzlement scandal that brought Volkswagen.

Despite BCG's projections, consultants McKinsey & Company and German Fraunhofer Institute claim that the place will be European for beginners because the demand is likely to outstrip delivery when automakers ramp up EV manufacturing.

German manufacturers have warned that jobs will disappear – as it does less time building electric cars and transferring foreign batteries position abroad.

The German VDA Auto Industry Association said the ban on the combustion engine powered cars in the 2030 that threaten 436,000 jobs car companies and their suppliers.

"Battery cells are the key technology and a significant part of the value chain, so we want it in Germany," said Hirte.

German Chancellor Angela Merkel attended the audience at Daimler AG's battery factory grammar ceremony


In terms of jobs and profits, the European Commission launched its own European Battery Alliance (EBA) in 2017, but Sweden Northvolt is considered as the only serious competitor to imagine so far.

As part of the Berlin bureau, Economics Minister Altmeyer speaks with German and European companies and neighboring countries to join their efforts. It coordinates the efforts of Brussels to resolve any state aid and antimonopoly issues.

"In a few years, Europe will have a competitive battery that can save it without state aid," Altermaire said after meeting with EU Vice President Maros Sefkovic in September, the EBA's driving force.

At Altmaier's two-day battery conference on November 12, details of battery life plans will be attended by Sefkovic.

With the help of a billion euro consortium designed for Germany's Battery Cell Consortium, the first factory that is probably familiar with two plans in West Germany.

Berlin also wants to support the second plant, perhaps in the Luciet region near the German-Polish border, where two regional elections in 2019 will be held.

The official representative of the Ministry of Economy said that Altmaier was in negotiations in all negotiations and no decision was taken.

In addition, the government wants to spend 500 million euros co-financing the research factory in order to assist German companies in the front of curve when solid state batteries are ready for mass market, Reuters.

Lithium-Ion batteries are supposed to be held over the years with solid state technology that is expected to produce cheap batteries with superior energy density.

The location of the research factory was not resolved and the government was going to start a tender process where the authorities and firms could play.

The official spokesperson of the Ministry of Science said that the government supports the development of solid state batteries through the creation of the leading research institutes of the private sector.

FestBatt is a well-known company that includes VTA, BASF, Volkswagen, BMW, a continental continental concentrated Thyssenkrupp, carbon fiber specialist SGL Carbon, Belgium's Umicore, Coperion and Heraeus spokesperson.

Now German manufacturers carry battery cells mainly from Asian suppliers such as CATL, LG Chem and Samsung SDI, but BMW has breached partnership with Northwold.

Emphasizes German firms, one of the largest automobile suppliers of Bosch in the world when choosing lithium-ion cells and said it would be very expensive.

Hans-Martin Henning, Fraunhofer's electric mobility researcher, is less pessimistic.

"If automobiles sell electricity from 10 to 20 percent, in the nearest years Europe needs to operate battery networks for more than 100 gigators," he said, adding that it is already planned by Asian manufacturers.

"Europe needs more battery cells and this should happen very quickly," Henning said.
It is expected that the expected change to solid state batteries might have less impact on European suppliers of rare earth resources that are largely controlled from China, which are used in lithium-ion cells.

"Landscape will change sharply in the coming years," said Porsche CEO Oliver Blo Reuters. "Europe has absolutely no chance."

Report by Michael Nainber; Edward Taylor, Ilona Wisenbach, Ludwig Burger and Andrea Shalley Additional Reports.

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