Batteries are a key technology of the energy transition. Whether electric mobility, heat pumps, or the storage of renewable energy – the electrification of central areas of the economy and society will not succeed without high-performance battery systems. This also increases the importance of a functioning circular economy for batteries. Europe is currently investing heavily in the collection, disassembly, reuse, and recycling of battery systems. However, one crucial part of the value chain has so far received far less attention: the production of new batteries from recovered materials.

This is precisely the question being addressed by the battery project group of the trilateral cooperation between North Rhine-Westphalia, Flanders, and the Netherlands, initiated by Circular Valley. The aim is to identify existing strengths in the region, highlight gaps along the value chain, and develop joint approaches for a more resilient European battery industry.

European Battery Production in Crisis

Europe continues to face major challenges in industrial battery production. Swedish battery manufacturer Northvolt – long regarded as Europe's hope for cell manufacturing independent of Asia – filed for insolvency in March 2025. Porsche has largely wound down its battery subsidiary Cellforce. And the long-established battery manufacturer Varta faced an existential crisis in 2024 and had to undergo a complex restructuring process. Meanwhile, Asian manufacturers, particularly from China and South Korea, have built up decades of production expertise and dominate large parts of the global market.

In recent years, significant investments have been made in building up recycling capacities and second-life applications for batteries in Germany and Europe. But: "Circular economy encompasses the entire value chain – not just the recycling of raw materials," says Dr. Carsten Gerhardt, Chairman of the Circular Valley Foundation. "If we recover battery materials, we must also be able to manufacture new batteries from them. Only then do genuine cycles emerge that make Europe more resilient and independent." The partners involved in the trilateral cooperation also agree: a circular battery economy requires closed value chains – from material development through production and use, all the way to reuse and recycling.

Conditions Are Favorable at the Materials Level

The region has important prerequisites for this. Companies from North Rhine-Westphalia and neighboring regions are among the technological leaders in various areas of materials science and specialty chemicals. They develop, among other things, membranes, coatings, and other components that are essential for modern battery systems. The challenge, however, lies in turning these into competitive products.

Against this backdrop, the battery working group within the trilateral cooperation between NRW, Flanders, and the Netherlands is examining which competencies already exist, where critical gaps lie, and how these can be closed together.

Circular Valley is also a partner in the TraWeBa project (Transformation Hub Battery Value Chain). The goal of this initiative is to develop further approaches for a future-proof and resilient battery value chain and to bring together stakeholders along the value chain. These activities complement the work of the trilateral cooperation and aim to help identify concrete solutions for building circular battery cycles in Europe.