A study commissioned by the Circular Valley Foundation has provided a systematic overview of the players, technologies, and trends in German mechanical and plant engineering for battery production. The study, published by the Chair of Production Engineering of E-Mobility Components (PEM) of RWTH Aachen University in collaboration with PEM Motion, concludes that international competitiveness can be achieved through technological specialization, collaborative value creation networks, and consistent industrialization. In principle, German mechanical engineering has the know-how and innovative strength from the electrode to the cell.
Recommendations for politics, industry, science
The results of the study will be used by the Circular Valley Foundationʼs Battery Working Group to develop key messages for the prime ministers of the Netherlands, Flanders, and North Rhine-Westphalia, who will sign a joint declaration on the circular economy on November 14th, 2025. Such a comprehensive inventory of German mechanical engineering expertise along the entire battery value chain was compiled for the first time as part of the Transformation Hub Battery Value Chain (TraWeBa) project. The aim of the study was to highlight potential and challenges and to derive concrete recommendations for action to be delivered to politics, industry, and science.
China is dominating, not Germany
Europe has set itself ambitious goals for independent cell production, but the global benchmark remains in Asia. While Chinese gigafactories operate with rejection rates of less than ten percent, this rate is often still 30 to 40 percent for European production lines, especially in the ramp-up phases. In addition, energy and material costs are significantly higher. According to the IEA, cell manufacturing in Europe is around 30 percent more expensive than in China. This results in higher system prices and a competitive disadvantage in global comparison.
Still capable of achieving excellence
However, the study paints a nuanced picture: According to the research, many German machine and plant manufacturers offer solid solutions for almost all process steps – from mixing and coating to calendering and stacking to forming and end-of-line testing. What is often still lacking, however, are large-scale manufacturing solutions that have been optimized over several years and that optimally balance cycle times, yields, and costs. Nevertheless, the analysis reveals clear areas of expertise. Companies such as DÜRR and GROB are increasingly developing complete production lines and investing in forward-looking processes such as dry electrode manufacturing and high-precision calendering technology. According to the study, such niches can generate technological leadership in the short term if industrialization is pursued consistently.
Collaboration and differentiation in Europe
The study describes two possible development paths for Europe as an industrial location. On the one hand, joint platforms and value creation based on the division of labor – comparable to an “Airbus for batteries” – could lead to scalable, resilient cell production. On the other hand, focusing on differentiating niches offers great opportunities – such as process technology excellence, digitalization of production, and quality assurance –, combined with engineering and export expertise. According to the publication, these strengths enable German mechanical and plant engineering to have a faster impact with lower capital investment and to position itself internationally as a partner for innovative manufacturing solutions.
Digitalization as a game changer?
The study sees enormous opportunities for German technology providers, particularly in the interplay between automation, precision engineering, digitalization, and sustainable processes. New battery concepts, such as solid-state or sodium-ion systems, are opening up additional fields in which mechanical engineering can position itself at an early stage, both as a developer of new production processes and as a guarantor of quality, safety, and scalability. If Germany succeeds in combining innovative strength with industrial implementation expertise, it could not only become part of the global supply chain, but also help shape the next step in battery production itself.
Study is available as a free download
The complete “Identifying the Potential and Players in Mechanical Engineering for Battery Production in Germany” study is available as a free PDF download.
