German economics and energy minister Peter Altmaier has presented a paper on the industrial manufacturing of battery cells that includes a pledge by Germany to subsidise battery cell production in Europe with €1bn ($1.13bn) by 2021.

“Battery technology is a key technology that will be indispensable across all areas of industrial value creation, in particular for the electrification of traffic systems, and the storage of renewable energies in private households,” the paper says, predicting that global demand will rise tenfold by 2030.

Altmaier at a conference on e-mobility in Berlin this week said he believes a first consortium for the production of battery cells will be established in Germany around the turn of the year.

The paper by the ministry stipulates a target to supply 30% of the world’s need for battery cells with production from Germany or Europe by 2030.

Interest among industrial companies to participate in a first consortium is growing, the ministry says, without giving names of interested parties.

Altmaier’s push to lure the production of battery cells to Europe comes amid press reports that a consortium of 17 major companies called TerraE that had aimed at building up large-scale “gigawatt” lithium ion battery cell manufacturing at two locations in Germany has run aground on disagreements about who would finance the ambitious plans.

Plans by battery start-up Northvolt to establish a $5bn battery plant in Sweden that would start production in 2020 are ongoing, though, with the backing of wind turbine OEM Vestas and German conglomerate Siemens.

Also, China’s Contemporary Amperex Technology Ltd. (CATL) has signed an agreement with Thuringia earlier this year for the construction of a €240m new battery cell gigafactory in the Eastern German stat, which according to regional broadcaster MDR could start output in 2020.

Transition

Germany to pay €1bn to lure battery cell production to Europe