Germany funds battery production in coal regions

Through this funding, the German Ministry for Economic Affairs aims to stimulate total investments of around €600 million, as stated in its announcement. “This will create approximately 600 new and sustainable industrial jobs, alongside up to 3,000 additional jobs in upstream and downstream supply chains,” the BMWK said.

Among the beneficiaries, the German battery recycling company Cylib has secured €63.4 million in funding to finance the second expansion phase of its facility in Dormagen—located in the Rhenish coal region. The goal is to build Europe’s first recycling plant for lithium iron phosphate (LFP) batteries, ensuring battery materials remain in circulation. The plant is expected to process 30,000 tonnes of material annually, achieving a material recovery rate of 90% using a hydrometallurgical process. Emissions are projected to decrease by 30% compared to conventional methods. With over €63 million in funding, the federal government is covering roughly one-third of the costs, with the total investment amounting to €181.13 million. The project is set to create 180 direct jobs and 1,000 indirect jobs.

Funding will also go to AMG-Lithium to expand its production capacities for manufacturing battery-grade lithium salts in Bitterfeld-Wolfen, covering the Central German coal region. The target is an annual production capacity of 20,000 tonnes of battery-grade lithium compounds, equivalent to around 34 GWh of battery production per year. At the heart of the project is an ‘innovative process for processing and reusing calcium oxide.’ The BMWK is contributing €36 million towards the €180 million total investment. AMG-Lithium plans to create 70 new jobs in Bitterfeld-Wolfen by 2029.

In the Lusatian coal region, at the Schwarze Pumpe Industrial Park, Altech Batteries GmbH is constructing a factory in Spreetal for stationary energy storage systems using salt, as another example. The focus is on ‘sodium chloride solid-state batteries with a fully regional supply chain.’ During the project’s runtime until the end of 2028, 162 jobs are expected to be created, with the potential for up to 700 jobs in the long term. Of the €153.69 million total investment, €46.11 million is being provided by the BMWK.

“Both small and large companies are actively driving the industrial transformation of the coal regions through these and four additional projects. They are also making a significant contribution to strengthening Germany’s resilience as an industrial location,” the ministry stated. The BMWK plans to publish a new funding announcement next year to continue supporting businesses in the coal regions.

“The coal regions are becoming the industrial future regions,” said German Economy Minister Katherina Reiche (CDU). “By funding battery cells, recycling, and other key technologies, we are creating new value chains, secure jobs, and greater technological sovereignty for Germany. This sends a strong signal, especially in times of global uncertainty. We remain a reliable partner for the regions.”

The funding originates from the federal programme STARK – Strengthening Transformation Dynamics and New Beginnings in the Coal Regions and at Coal Power Plant Sites – which was expanded in 2024 by the BMWK to include ‘an investment-based corporate funding component.’ This expansion enabled the current funding approvals.

bundeswirtschaftsministerium.de, bundeswirtschaftsministerium.de (Projects overview as PDF; both in German), cylib.de