Planned Battery Recycling Facility in Germany Canceled

Gera, Germany - The collaborative project between South Korean recycling specialist Sungeel and Samsung to establish a battery recycling facility in Gera has been officially terminated. The ambitious initiative, which was slated to cost around 45 million euros and create approximately 100 jobs, aimed to commence operations by 2027.

The facility was expected to process over 22,000 tons of used batteries annually. However, the project has been halted, as announced by a spokesperson for Sungeel. The announcement follows earlier reports from regional media.

One of the primary reasons for this cancellation is the global decline in demand for electric vehicles (EVs), which has, in turn, diminished the need for batteries. This shift has prompted a reevaluation of the companies' strategic focus. Additionally, the lengthy timeline required for construction approval contributed to the decision. The necessary permits for the facility were still pending.

The project had faced opposition from local residents, prompted by a citizen initiative that expressed concerns regarding its environmental and social impacts. The implications of this cancellation are significant, particularly for the automotive sector in Thuringia. Industry leaders are voicing concerns over the potential setbacks for the region's transition to electric mobility.

Rico Chmelik, the managing director of automotive thüringen, emphasized the critical nature of such projects for the future of the automotive industry in the region. He raised questions about how the transformation of the automotive sector can succeed if future-oriented projects face obstacles.

Chmelik highlighted that the current state of the industry is fraught with challenges, necessitating high-tech solutions and sustained investments to secure a viable future for the automotive sector. He expressed concern that the abrupt cancellation of the recycling facility sends a negative message to potential international investors.

Despite the withdrawal from this specific project in East Thuringia, Sungeel has indicated that it remains open to exploring alternative opportunities, though the timing and locations of such projects are not yet determined. The planned recycling facility was to focus on dismantling old lithium-ion batteries and separating materials for reuse in new batteries.