As early as 2018, the German government announced that it would subsidize the production of lithium-ion batteries in the country in order to keep up with the output of Asian countries. More than 30 companies have applied for subsidies, including BMW and battery manufacturer Varta. According to related reports, Volkswagen has also decided to enter.
A representative of the Volkswagen Group said in a statement: "The Volkswagen Group hopes to participate in the initiative of Economy Minister Altmaier to support the industrial production of mobile and stationary batteries."
Part of the reason for Germany’s late arrival in lithium-ion batteries is that high labor costs have greatly increased the price of development, and the high cost is also the main reason why Daimler’s battery production subsidiary li-tec closed down in 2015.
In addition to subsidies for lithium-ion batteries, the German government has allocated a total of $1.2 billion to fund the development of solid-state battery technology in Germany to offset the potential job losses caused by the reduction of internal combustion engines.
The project is part of a broader plan for EU countries to reduce their dependence on Asian batteries, with the ultimate goal of the EU and its member states occupying 30% of the global lithium-ion battery production market share.