Written by Dr. Ulla Reutner
Around two terawatt-hours per year—that was the plan for Europe’s battery cell production as recently as April 2025. Given the past few years and the numerous projects that have since been cancelled, this target is unlikely to be met. Especially since these capacities would even exceed demand. While demand is rising significantly—particularly due to the growing acceptance of electric vehicles—it is doing so more slowly than expected. Europe has a backlog of demand. Which of the major projects are currently secured?
The Volkswagen Group has delivered, almost unnoticed by the general public. Its subsidiary PowerCo commissioned its first European battery cell production facility in Salzgitter, Germany, in mid-December 2025—ironically, just as the EU was calling into question the phase-out of internal combustion engines. The first cells produced there are already being used for testing in vehicles. The first series production is still planned for this year. In the first phase, an annual production capacity of 20 GWh (approx. 250,000 electric vehicles) will be established, which can be expanded to 40 GWh. The concept is intended to serve as a blueprint for additional cell factories in Valencia (Spain) and St. Thomas (Canada). By integrating the value chain—from raw material extraction through the production of cathode active material (CAM) and electrodes to recycling—PowerCo aims to establish its battery cell production in a competitive and sustainable manner.
Tesla’s German battery manufacturing facility in Grünheide is still under construction. In the future, battery cells and electric vehicles are to be produced at the same plant. However, only individual components are currently being manufactured there; cell production itself takes place in the U.S. With an investment of nearly 100 million euros, the battery factory in Grünheide is now being expanded and the depth of value creation increased so that complete cells can be produced there starting in 2027. Production capacity is expected to reach up to eight GWh annually.
The Chinese company CATL has been producing lithium-ion battery cells in Erfurt since the end of 2022—the first large-scale, series-production-capable cell manufacturing facility in Germany, representing an investment of around 1.8 billion euros. The ramp-up to 14 GWh of annual cell capacity is not yet fully complete.
In parallel, CATL is building a significantly larger factory in Debrecen (Hungary), a mega-hub for Europe. One of the world’s largest battery factories is being built there on a 221-hectare site, at a cost of around 7.3 billion euros. An initial capacity of 40 GWh per year is planned; once fully operational, the facility is expected to produce batteries with an annual capacity of around 100 GWh. Commissioning is scheduled for the first half of 2026; according to CATL, Phase 1 of the expansion is already fully booked. In addition to cell and module manufacturing, material production and recycling are also planned there in the medium term.
In mid-March, a visit by Lyten CEO Dan Cook to Heide (Schleswig-Holstein, Germany) raised hopes for the site. The visit concerned a potential takeover of the originally planned Northvolt battery plant. Lyten was founded in the U.S. in 2015 and specializes in lithium-sulfur-based batteries. It intends to produce batteries in Heide for a wide range of applications: in addition to electric vehicles, this includes stationary energy storage and defence. Construction is—quite optimistically—already scheduled to begin next year, with operations set to start in 2028. Lyten completed the acquisition of the insolvent Swedish division of Northvolt at the end of February. However, the acquisition of the German subsidiary is not yet a done deal.
In contrast, Lyten’s acquisition of the Northvolt battery recycling plant was confirmed in March. The plant is located in the immediate vicinity of the Lyten Ett Gigafactory in Skellefteå, Sweden. The acquisition by Northvolt was finalized at the end of February. Production is now being ramped up there again. Commercial cells are expected to be produced starting in the second half of 2026: in addition to traditional lithium-ion NMC cells based on Northvolt technology, Lyten lithium-sulfur batteries will also be produced.
Promising battery factories are also being built in France. As part of the ACCEPT project, ACC is planning five production lines for lithium-ion NMC cells for electric vehicles at two gigafactories in Billy-Berclau / Douvrin in northern France. Starting in 2030, these are expected to produce an annual output of 15.65 GWh. ACCEPT intends to advance the industrialization of next-generation NMC cells as much as possible within a European value chain. The cells produced there are expected to enable ultra-fast charging (80% charge in 15 to 20 minutes).
At the same site, ACC—in which Saft/TotalEnergies, Mercedes, and Stellantis hold stakes—has been operating a gigafactory since late 2023. In the initial phase of Block 1, annual capacity is 13 GWh; it is set to be ramped up to 40 GWh. However, like other European battery factories, the ramp-up is proceeding more slowly than planned. Block 2 is expected to come online in 2026, with a third block to follow. Plans for additional plants in Kaiserslautern (Germany) and Termoli (Italy) were shelved in February 2026.
The Verkor Gigafactory in Dunkirk was also officially opened in December 2025. The test phase and ramp-up are currently underway; stable series production is still expected in 2026. The initial capacity is 16 GWh per year across multiple lines, covering the entire cell manufacturing process. The expansion target is 50 GWh/year by 2030. This would make the plant one of the largest in Europe, comparable to the major sites of CATL and PowerCo. It is designed for high-performance cells (NMC) for performance vehicles—and, thanks to customer Renault, also boasts strong OEM support. However, unlike ACC or CATL, Verkor is a player that has yet to prove itself. It was founded in 2020 as a European industrial project with the goal of establishing its own battery production independent of Asia. Behind it stands a broad consortium of investors and industry partners, including Schneider Electric, Arkema, EIT InnoEnergy, and the anchor customer Renault Group. The ramp-up of the first expansion phase is the first test, and further scaling is the second, to determine whether this will indeed become one of Europe’s most important cell manufacturers.
Several other battery factories are currently being built in Europe, albeit not by European manufacturers. Among the most significant projects is a plant in Zaragoza, Spain, in which the Chinese company CATL is investing 4.1 billion euros together with Stellantis. Construction of the factory for LFP cells and modules began in November 2025. Construction is scheduled to be completed in March 2028. One of the largest battery factories in the UK is being built in Somerset. There, Agratas, a subsidiary of the Indian Tata Group, is building a plant with an annual capacity of 40 GWh for around 4.5 billion euros. It is scheduled to open in 2026. The automotive batteries manufactured there will be used by Tata itself as well as by its subsidiary Jaguar Land Rover. In addition, batteries for other applications, such as stationary energy storage, will also be produced there.
Still in the planning stage is the Gotion-InoBat battery factory in Šurany, Slovakia (Chinese cell manufacturer). The Chinese companies CALB and Sunwoda are also building factories in Europe; CALB, for example, in Sines, Portugal (an MoU has been signed), and Sunwoda in Budapest, Hungary. BYD is also showing interest in expanding production, though in Turkey (customs union with the EU). It is still speculative whether the automaker will add a battery factory to its production plant in Hungary. So far, only a small battery assembly plant is being built there. The common motivation of the Chinese manufacturers—in addition to shorter logistics routes to their own car plants and the plants of European customers—is to circumvent European tariffs.
Europe is currently expanding its battery cell manufacturing capacity faster than any other region, from its current 6–10% share of the global market to up to 25% by 2030. However, the further expansion of the various gigafactories in Europe depends on market growth, particularly regarding electric vehicles and stationary storage. Any softening of the decision to phase out internal combustion engines starting in 2035 would function as a brake. But electric mobility and green energy generation, including stationary energy storage, cannot be stopped. Even if China continues to dominate—Europe is gaining ground.
