Numerous battery factories are to be built worldwide - which in turn need to be equipped with production technology. An opportunity worth billions if Europe's mechanical engineering companies make the right use of it.
Over 200 battery factories are set to be built worldwide over the next ten years.
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According to the study "Battery Manufacturing 2030: Collaborating at Warp Speed", the global battery market, mostly based on lithium-ion technology, is expected to grow from around 20 billion euros per year today to around 550 billion euros per year by 2030. For German and European machine and plant manufacturers, this represents a major growth opportunity, as the authors of the study from Porsche Consulting and the VDMA explain. This is because production technology worth billions is needed for the factories that manufacture the batteries. Over 200 battery factories are to be built worldwide in the next ten years, the majority of them in Europe.
So far, however, the battery factories have mainly been equipped with production technology from Asia. Chinese machine manufacturers in particular are currently setting the standard as complete suppliers. According to the study, only 8% of the high-tech equipment for such factories comes from Europe. This share is too low to have a formative influence on technical development and to create a second cluster for battery technology in Europe, according to the study. This would require a long-term market share of around 20%, as the battery experts explain in the study.
Market Share in Battery Production Grows Strongly
Nevertheless, there are still opportunities for machine manufacturers: growth rates of 33% per year would be necessary just to maintain the market share of only 8% in the battery market during the rapid ramp-up. According to the analysis, companies would have to grow faster than the market to achieve a market share of 20%. An increase in sales of around 50% per year would be necessary - and possible, as the authors of the study explain.
The market volume by 2030 for machine and plant manufacturers in the battery sector alone amounts to 300 billion euros. "Success in this competition would secure Europe's long-term access to the important future technology of batteries and create many jobs in the process," the authors write.
Offering Integrated Factory Solutions Together
The German and European mechanical engineering industries have recognized this and are actively addressing it, according to the study. "The foundation of our industry lies in the close cooperation between mechanical and plant engineering companies and their customers," says Hartmut Rauen, Deputy Managing Director of the VDMA. Companies such as Manz AG from Reutlingen are consistently pursuing this path. The cooperation with the Dürr and Grob groups is a response to the growing demand for innovative battery production solutions for gigaprojects, says Martin Drasch, CEO of Manz.
"Only if European mechanical engineering companies succeed in jointly offering integrated factory solutions will they be able to hold their own against the competition from Asia," says Gregor Grandl, Senior Partner at Porsche Consulting and co-author of the study. "Technologically, the European industry is on a par, but companies from China are already offering entire turnkey battery factories." This reduces interfaces and therefore the time and financial risk involved in construction.
Europe and North America to Join Forces
According to the study, cooperation between Europe and North America is also crucial in order to counterbalance the strong competition from Asia. The Asian cluster could be challenged by this second, European-North American cluster.
This second battery cluster would be successful if it covered the entire value chain of battery cell production, including materials, systems and cell production facilities with all their components. The race will be determined by the established Chinese companies, which are pursuing an aggressive pricing policy and at the same time are reaching their limits when it comes to raising new capital, as well as by the effects of the Inflation Reduction Act (IRA) in the USA, according to the analysis. Taken together, these factors would offer an opportunity in Europe and North America, but are also likely to increase competitive pressure in Europe.
This is a partly automated translation of this german article.