Germany Revives Battery Research Funding in 2026 to Regain Global Competitiveness

The German government has reinstated funding for battery research in its 2026 federal budget, ending a two-year funding stagnation that had hampered progress in this critical sector. Research Minister Dorothee Bär announced the renewed support at a battery forum in Berlin, signaling a fresh start for researchers previously affected by the halt triggered by a KTF ruling.

Rüdiger Daub, director of the Fraunhofer Institute for Casting, Composite, and Processing Technology (IGCV), highlighted the urgent need for Germany to rebuild its competencies in battery technology to remain competitive globally. He noted the setbacks caused by the funding gap, including talent loss and operational challenges across many institutes.

Daub emphasized that while the funding renewal is encouraging, the delay before project awards means Germany may lag behind aggressive international competitors, particularly the USA and China, the latter heavily subsidizing its battery industry. He stressed the importance of a strategic shift toward building a European value chain leveraging local resources, especially in the energy supply and automotive sectors.

The Fraunhofer IGCV is currently developing a research and development platform for battery technology, aiming to foster collaboration between researchers and industry partners. With timely political support, Daub expressed optimism that Germany can regain a significant role in the battery sector despite fierce global competition.