Clarios Invests c.€200 million in the Production of Advanced Battery Technologies in Europe

Date: Monday 02 September 2024

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The battery manufacturer Clarios invests approximately €200 million in its European plants and is thus expanding continuously its production capacities for advanced adsorbent glass mat (AGM) vehicle batteries starting in 2022. As of 2026, around 50% more units will be produced each year. In Europe, Middle East and Africa (EMEA), Clarios is operating 13 production sites including two recycling centres. These investments are a part of Clarios’ strategy to invest globally in projects specifically focused on AGM production in the short-term which allows Clarios in EMEA and its aftermarket brand VARTA Automotive to strengthen the leading position in this region by driving our ability to deliver to customers even quicker than before. The expansion creates around 150 attractive jobs in modern plants in Germany, Spain, Czech Republic and France enabling the building of production clusters bringing the “in-the region for-the region strategy” in EMEA to life.

Essential for sustainable mobility

The automotive industry is changing fundamentally, driven by the trends of electrification, digitalization, and circularity. As platforms become increasingly complex and power-hungry, the need for developing advanced low-voltage systems capable of providing the energy needed for performance and safety, becomes even more crucial. We expect the global demand for advanced low-voltage systems will grow by 7% per year till 2030.

AGM batteries from Clarios are essential for sustainable mobility. They ensure optimum performance in electric vehicles and provide constant power for crucial safety and comfort functions in both electric vehicles and modern commercial vehicles. In vehicles with a combustion engine, they enable fuel-saving functions such as start-stop technology.

In Europe, Clarios is the undisputed market leader with its advanced battery solutions, which include the vehicle battery brand VARTA Automotive: in seven out of ten new vehicles with start-stop technology, it is the AGM batteries from Clarios that start the engine reliably after every stop. Furthermore, the xEV batteries for electric vehicles, which were launched by VARTA Automotive last year, already account for 90 percent of electrified vehicles on European roads and are also suitable for future models.

Focus on central Europe

The largest expansion of AGM capacity will be at the Hanover plant in Germany, which is also home to the European headquarters of Clarios. The company uses most of the investment to finance new assets and is also optimizing processes and shifting the entire site, including case production, to advanced battery technologies. “Through extensive automation, we are increasing productivity at the site and, at the same time, securing the existing jobs there”, highlighted Dr. Werner Benade, President EMEA at Clarios.

To create the necessary space, a significant part of the production of conventional batteries and the advanced EFB batteries for original equipment manufacturers (OEMs) has been relocated from Hanover to Česká Lípa in the Czech Republic. Additionally, plastic housing for AGM batteries and small parts such as plugs and handles will also be increasingly produced in Česká Lípa. Additional capacities were also created at this site: Clarios is expanding the factory building and investing in new production machines worth a two-digit million amount.

In Zwickau, Germany, Clarios already operates the largest production plant for AGM batteries worldwide. The annual capacity here has increased significantly, which is based on an investment volume of several millions. Since the start of AGM production in 2002, more than 80 million batteries have been supplied from Zwickau.

The recycling operation in Krautscheid, Germany, supports the AGM expansion with increased recycling of lead alloys for the grids used in AGM batteries. The Krautscheid site thus complements the capacity expansion in the production network for Central Europe, which secures the supply to vehicle manufacturers in the region and in the aftermarket.

An additional production cluster is located on the Iberian Peninsula. In the future, conventional and EFB batteries for original equipment manufacturers (OEMs), which were previously manufactured in Hanover, will be produced at the Spanish sites in Burgos and in the battery case plant in Ibi. Production capacities will be expanded accordingly. To do so, equipment will be moved from Hanover and an investment of millions will be made at the two Spanish sites. Clarios has already invested several million in the Ibi plant over the past three years.

In addition, the plant in Guardamar, Spain, will also manufacture 50 percent more Powerframe^® grids for EFB batteries, and will be equipped with an additional production line to do so.

The production cluster on the Iberian Peninsula will also recycle lead from old batteries locally. The recycling plant in Media del Campo has been a crucial part of the internal supply chain since 2022.

“All these investments in our leading AGM technology ensure that our customers in the OEM and aftermarket business receive the best and most efficient batteries”, explained Benade. “We will thus continue to support all electric and safety-relevant functions for all vehicle types for a long time to come. We are pushing forward with our solutions for transforming the automotive industry by implementing the trends of electrification, digitalization and circular economy.”

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