Battery technology: "Europe must set new standards"

Europe aims to play a leading role in battery cell research and production – but how realistic is this given the dominant competition from Asia? Dr Jonathan Krauß and Dr Richard Schmuch, scientists at the Fraunhofer Research Institution for Battery Cell Production FFB in Münster, Germany, see significant opportunities for Germany in particular to close the gap in the global battery race – provided that industry and politics act decisively.

The article was first published in C2 Coating & Converting, Issue 110.

In the field of battery cell production, it is often argued that Germany should be strengthened as a development and production hub for batteries. But is this even a realistic goal given the strong competition from Asia?

Dr Jonathan Krauß: Yes, the goal is realistic – even if it is ambitious. We are catching up technologically, particularly in the areas of production processes, digitalisation and sustainability. It is essential that we do not simply imitate others, but instead leverage our own strengths, such as mechanical engineering expertise and environmental technology. Our advantage lies in high-precision process management, quality and sustainability – criteria that are becoming increasingly important in the European market.

How do you assess the strength of Asian suppliers compared to the European battery manufacturing industry?

Krauß: Asian suppliers – particularly from China, Korea and Japan – currently lead the way in both cell chemistry and mass production. They benefit from decades of experience, economies of scale, strong government support and vertically integrated supply chains. Nevertheless, we see Europe catching up through innovations in process technology, automation, the circular economy and the training of skilled workers. Our role is unlikely to be pure mass production, but rather to set new standards in quality and sustainability.

Dr Richard Schmuch: Since the market introduction of lithium-ion technology in the early 1990s in Japan, Asia has developed extensive expertise in battery cell production and has successfully applied it to new areas such as electric traction batteries, larger cell formats and advanced cell chemistries. European suppliers have often excelled in specific process steps, but have struggled to provide fully integrated production solutions for cell manufacturing. The industrial "battery ecosystem" in Germany and Europe is still in its early stages, although significant expertise has already been developed in research and development in recent years. German car manufacturers currently source their cells from Asian suppliers, often hesitating to take the entrepreneurial risk of setting up their own cell production.

And how do you assess the current and future market development for battery cells in Europe and Germany – particularly in light of the recent drop in demand for electric vehicles?

Krauß: The short-term decline in demand for e-mobility is leading to temporary overcapacity, particularly among OEMs and suppliers. This primarily impacts the German market, while globally, different trends are emerging. In the medium to long term, the market is expected to continue growing strongly – not only driven by e-vehicles, but also by stationary storage, industrial applications and aviation. In Europe, regulatory frameworks such as the Green Deal and CO₂ fleet limits are likely to provide stable, long-term support for demand.

Schmuch:  I also view the decline in e-mobility demand as a temporary phenomenon, partly due to the still relatively high purchase costs of electric vehicles. If Germany and Europe are to maintain their strong positions in the automotive sector over the long term, it will be essential to expand expertise in battery technology – particularly as a significant portion of the value creation and differentiation potential in electric vehicles lies in the battery cell. In addition, batteries as large-scale energy storage systems will play a crucial role in the energy transition, optimising the use of renewable energy and stabilising and decentralising power grids.

Which battery technology do you consider particularly relevant now and in the future?

Krauß: Lithium-ion cells, particularly those using NMC (nickel,  manganese, cobalt) and LFP (lithium iron phosphate) chemistries, currently dominate the market. In the future, solid-state batteries, sodium-ion technologies and lithium-sulphur cells are expected to gain importance, depending on the application. In e-mobility, the main focus will be on energy density and safety, while stationary storage systems are more likely to be optimised for cost and service life.

Schmuch: In mobile applications such as e-mobility and consumer electronics, lithium-ion technology remains dominant due to its high energy density and will likely continue to lead the market over the coming decade. In terms of cathode chemistry, a distinction is made between cost-effective LFP-based cells, which are common in mass-market electric vehicles, and energy-optimised NMC cells, which are typically used in the premium segment. In Asia in particular, the share of LFP-based lithium-ion batteries (LIBs) is growing rapidly, partly driven by technological innovations in cell integration and fast-charging capability.

About Fraunhofer FFB
As an open battery cell factory for research and development, the Fraunhofer FFB is driving forward the sustainable and efficient production of battery cells made in Germany. To this end, an infrastructure for the development and testing of the production of different battery cells is being created in Münster that is unique in Europe.
In the "Battery City Münster", the Fraunhofer FFB will soon operate two battery factories: FFB PreFab and FFB Fab. The FFB PreFab, which opened in April 2024, is a pilot plant for producing pouch and prismatic cells. Ground was broken for the FFB Fab in April 2025, and it will provide approximately 20,000 m² of additional production and research space for industry-relevant research and development in the gigawatt range. Fraunhofer FFB's research is aimed at companies in the mechanical and plant engineering sectors, as well as at cell manufacturers and integrators of lithium-ion battery cells who wish to develop their products using the latest cell technologies.

Caption 1: Dr Jonathan Krauß, Head of Department "Digitalisation of Battery Cell Production" at Fraunhofer FFB (left): "It is essential that we do not simply imitate others, but instead leverage our own strenghts."

Caption 2: Dr Richard Schmuch, Group Leader "Materials" at Fraunhofer FFB: "The decline in e-mobility demand is a temporary phenomenon." (Images: Fraunhofer FFB)

Interview: Bettina Maurer, C2 Coating & Converting

Read the full interview in the current issue of C2 Coating & Converting 110.