Germany's Bold Step in Battery Recycling Amidst China-EV Competition

Chancellor Olaf Scholz assured German automakers of their competitiveness against China as he inaugurated Mercedes-Benz's first battery recycling plant, part of Germany's new industrial strategy. He opposed EU tariffs on Chinese EVs, while emphasizing the importance of fair trade practices and environmental sustainability within the auto industry.

German automakers should not shy away from competition with China, Chancellor Olaf Scholz remarked on Monday during the inauguration of Mercedes-Benz's pioneering battery recycling facility. This venture is a critical component of Germany's revamped industrial strategy, marking a significant shift towards sustainability in the automotive sector.

Addressing concerns about fierce competition from China, Scholz recalled past challenges from South Korea and Japan that German companies successfully navigated. He reiterated Germany's opposition to the European Union's tariffs on Chinese electric vehicles, highlighting the importance of competitive fairness.

The Chancellor stressed the necessity of implementing tariffs primarily in cases of actual market disadvantages, such as the steel industry. Meanwhile, Mercedes-Benz aims to recover essential raw materials from decommissioned batteries, enhancing their commitment to reducing carbon emissions in their operations.

(With inputs from agencies.)