Press release

Ellwangen, 6^th October 2021

Capital Markets Day: VARTA AG confirms plans to build V4Drive lithium-ion cells for battery electric vehicles

The German technology company will further extend its lithium-ion V4drive cell portfolio for electromobility / First Capital Markets Day held online on Wednesday

Ellwangen. VARTA AG has announced large lithium-ion round cells for battery electric vehicles (BEV). The new cells make a difference especially for the next generation of performance cars and for other non-automotive applications, said VARTA-CEO Herbert Schein at the company's first Capital Market Day, hosted online on Wednesday. "We believe that our round-cell formats are excellent alternatives for building battery electric vehicles in the performance sector due to their unique features", said Schein.

VARTA had announced its ultra-high-power lithium-ion round cell V4Drive in the 21700 format (2.1 cm in diameter, 7 cm in height) at the beginning of this year. The V4Drive technology will now be transferred to even larger cell formats. The aim is to power BEVs, offer long driving range and additional power for dynamic driving. Schein: "VARTA is putting performance into e-mobility. Today's energy batteries provide automotive engineers the ability to build cars offering a long driving range. V4Drive will offer additional performance qualities on top. This makes it ideal for the performance sector of the automotive industry. An electrical car powered by V4Drive cells will be able to cover large distances and at the same time offer more dynamic driving - and it can be charged much faster than it is possible today." According to Schein, VARTA will decide on the scale at which the company will enter production of V4Drive by the end of this year, depending on customer demand.

Armin Hessenberger, VARTA's CFO, said during the event on Wednesday, that the company has the financial strength to enter the next growth era. "Since the beginning, VARTA has produced almost half a billion CoinPower cells. VARTA has gained experience in producing small lithium-ion cells, and we are now transferring this know-how into the production of larger rechargeable lithium-ion cells. VARTA's approach is to provide cells to the market with a better, with a different property than what is available on the market today. The high cash flows VARTA has generated so far with the primary zinc-air batteries, with the consumer business - which we recently bought - and now with our CoinPower cells, support the cash flow to finance the R&D and industrialisation of the large lithium-ion cells." Pilot production of the V4Drive cells in the 21700 format will start at the end of this year, mass production is targeted to start two years later, with a production capacity of at least 2 GWh.

Rainer Hald, VARTA's CTO, confirmed that the production of larger lithium-ion round cells will benefit from synergies with the production of the smaller lithium-ion round cells, called CoinPower. "Our technologies build on each other: We have transferred the innovative foil seal design of the hearing aid batteries - where we have become market leaders - to CoinPower and combined it with further innovations. We are now doing the same with V4Drive: We are transferring CoinPower's know-how to V4Drive and adding further innovations."

The event on Wednesday was VARTA's first Capital Markets Day since its IPO in 2017. Due to COVID-19, it was streamed to viewers live and online. A recording will be available on the company's website .

Media contact:
Christian Kucznierz
Head of Corporate Communications
Tel: 727

Investor Relations:
Bernhard Wolf
Head of Investor Relations
Tel. : 2969

About VARTA AG

VARTA AG produces and markets a comprehensive battery portfolio from microbatteries, household batteries, energy storage systems to customer-specific battery solutions for a variety of applications and, as a technology leader, sets industry standards in important areas. As the parent company of the group, it operates in the business segments "Lithium-Ion Solutions & Microbatteries" and "Household Batteries".
The "Lithium-Ion Solutions & Microbatteries" segment focuses on the microbattery, lithium-ion CoinPower, lithium-ion large cells and the lithium-ion battery pack business. Through intensive research and development, VARTA sets global standards in many areas of lithium-ion technology and microbatteries, making it a recognised innovation leader in the important growth markets of lithium-ion technology and in primary hearing aid batteries. The "Household Batteries" segment comprises the battery business for end customers, including household batteries, accumulators, chargers, portable power (power banks) and lights, as well as energy storage devices.
VARTA AG currently has almost 4,800 employees. With five production and manufacturing facilities in Europe and Asia as well as sales centres in Asia, Europe and the USA, the operating subsidiaries of VARTA AG are currently active in over 75 countries around the world.