German car companies’ dependence on foreign battery manufacturers a risk – interview

The German automotive industry is becoming increasingly dependent on a small number of foreign manufacturers for batteries, which are necessary components for electric cars, Wolfgang Bernhart from the consultancy Roland Berger said in an interview with Manager Magazin. Since there are so few battery cell providers, German car companies will not be able to keep prices for the components as low as they have in previous orders, according to Bernhart. Although the automakers currently have substantial leverage, “it appears that in the long term, the cell manufacturers will have the upper hand,” Bernhart said.

Read the interview in German here.

For background, read the dossier The Energiewende and German carmakers and the article Chinese-German battery cell deal key step for mobility transition.