Battery producers scale down operations in Germany, blame difficult market conditions

German solar photovoltaics company Solarwatt is halting production of battery storage systems at its site in Dresden by the end of the year, pv magazine reports. The move follows Solarwatt’s decision in April to also end production of solar modules in Germany. The company plans to move manufacturing of modules and storage systems to Asia. “For economic reasons, continued operation in Germany beyond 2024 is unfortunately no longer possible in the foreseeable future,” Solarwatt head Detlef Neuhaus said. The move will affect some 170 of the company’s 750 employees. Solarwatt cited similar reasons for closing its module production site, saying last month that operating the facility in Germany under current circumstances was “extremely difficult economically” and could not be justified. Solarwatt nevertheless plans to remain in Dresden, where it will focus on advancing development and optimisation of its systems.

Meanwhile, Chinese battery manufacturer SVOLT has cancelled plans to open a plant in the German state of Brandenburg, electrive reports. As reasons for the move, the company cited the highly volatile automotive market and the low level of planning security due to “the threat of international punitive tariffs” and market distortions caused by “lengthy [procedures] and unevenly distributed subsidies.”

“The automotive market is currently struggling with considerable fluctuations and challenges all over the world, mainly driven by the transformation to electric mobility,” Kai-Uwe Wollenhaupt, president of SVOLT Europe, said. “This is leading to some drastic strategy adjustments for some car manufacturers.” In addition to already low planning certainty, SVOLT has recently lost a significant customer project, he added.