Varta stepping into EV battery production. The Swabian battery manufacturer Varta also wants to produce battery cells for electric cars in the future. WirtschaftsWoche learned this from circles close to the group.
The large-format battery cell 21700 (7 cm high, 2.1 cm diameter), for which Varta is currently building a pilot line at the headquarters in Ellwangen, is to be used primarily in high-performance electric cars – for example as a short-term accelerator or as part of novel drive concepts in which the battery is permanently recharged by an engine while driving.
According to insiders, the M-Dax Group is currently in talks with several car manufacturers. Varta had not initially wanted to comment officially on the plans, but has since confirmed the plans.
Until now, Varta mainly produces small lithium-ion button cells for wireless headphones as well as household batteries for remote controls, watches, flashlights and the like. Group sales rose by around 140 percent to EUR 870 million in 2020, also due to the acquisition of the household batteries segment.
Last year, Varta also received around €300 million in funding under the EU funding project IPCEI, of which around two-thirds will go towards research and development of the new 21700 cells.
Varta also scores points with investors with its new plans to produce battery cells for electric cars. Varta shares are up 11.8 percent at the top, leading the MDax. Many investors at Varta have bet on falling prices, one trader said. “They are now forced to buy to keep their losses in check.”
Market observers had recently repeatedly wondered if and if so, how Varta will enter what is arguably the most promising industry for battery technology. Manufacturers from China (CATL, BYD, Farasis), Japan (Panasonic) and South Korea (LG, Samsung) still dominate here.
Several battery cell factories are also to be built in Germany, but almost always on the initiative of these companies, which already have considerable market shares. This is also the case with Tesla’s plan to produce battery cells at its location in Grünheide, Brandenburg.
European manufacturers have only announced similar plans so far, such as Volkswagen: On the so-called “Power Day”, VWCEO Herbert Diess announced that he would be ramping up five other plants in addition to the already planned battery cell production in Salzgitter.
And last September, the French battery manufacturer Saft and the French car company PSA agreed with the German company Opel to set up two factories for the production of electric car batteries.
Now Varta is entering e-mobility, March 16, 2021