Another company ends panel and battery production in Germany, moving it to Asia

While Europe is trying to kick-start a domestic supply chain for renewables and batteries, existing manufacturers are withdrawing from the market. The latest example is Solarwatt, which plans to move battery production from Germany to Asia. Back in April, the company had already announced that it would end production of photovoltaic panels in Germany.

The European industry continues to contend with high energy prices compared with competitors in the US and Asia. In some cases, these high costs are prompting local industry to move to those regions. Solarwatt will join the ranks of these companies by the end of this year, moving battery production from Europe to Asia.

The company made a similar announcement in April, when it said it planned to end photovoltaic panel production in Germany. It is the second panel manufacturer to cease production in Germany since the start of the year. Swiss company Meyer Burger is also planning a similar move, but will relocate production to the US.

"For economic reasons, it is unfortunately no longer possible to continue operations in Germany beyond 2024 for the foreseeable future," said the company’s CEO, Detlef Neuhaus.

According to Clean Energy Wire, Solarwatt only opened its modern production line in Dresden in 2020. At the time, it still hoped that domestic production in the EU would be competitive, at least for higher-end panels. Demand for solar panels in Europe has set new records in recent years, but around 90% of installations consist of panels imported from China, according to the website.

It was not long ago that the German Bundesrat itself called for stronger support for domestic industry. It brings together representatives of the governments of Germany’s federal states. The European industry has long faced competition from cheaper imports from Asia, particularly China. According to the Bundesrat, one possible solution could be to introduce special auctions in which developers using components from EU countries could secure higher support.