Germany’s Industry Must Increase Investments in Electric Cars and Batteries

The German automotive industry must strongly invest in electric vehicle technology and develop battery production facilities in Europe to keep pace with global competitors, stated Minister of Economy and Energy Peter Altmaier.

Altmaier said that car manufacturers must invest high “double-digit billions” in electric vehicle technology, expressing his confusion as to why companies have hesitated for so long.

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Investments are also needed in battery production, given the expected demand for millions of electric batteries, which could help companies earn good money, Altmaier said in an interview with the daily Bild, published on Monday.

“Otherwise, we will have to accept that a large part of the added value will be produced in Asia or the United States, instead of here at home,” he asserted.

The German automotive industry, which accounts for about 800,000 jobs in the largest European economy, is struggling with global backlash and aversion to diesel cars after Volkswagen (VW) admitted in 2015 to falsifying emissions tests in the U.S.

To help reduce pollution levels and avoid a complete ban on diesel vehicles, VW, Daimler, and others have intensified the development of electric cars.

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The new German coalition government plans to ease the tax burden for electric vehicle drivers, ensure at least an additional 100,000 charging stations across the country, and subsidize car-sharing, aiming for a stronger shift towards “greener” transportation.

They also plan to secure funding for research into autonomous driving technology and support the establishment of battery production in Germany.

Altmaier stated that German car manufacturers should develop a model that has a range at least comparable to Tesla but is cheaper, and that they should work on developing a technological platform for self-driving cars. “The first safe autonomous cars must operate with German technology,” he said.

German companies should also collaborate with other European companies to develop battery production at the European level.

The minister from the Christian Democratic Union (CDU) asserted that it is essential to secure hundreds of thousands of jobs that currently support the automotive industry and suppliers.