In the autumn of 2026, Varta will cease the production of rechargeable button cells at Varta Micro Production GmbH in Nördlingen, as its key major customer, Apple, has decided not to renew its order. The manufacturing operations were almost entirely geared toward this specific client. Consequently, around 350 employees will lose their jobs, while the affected section of the plant will lose its economic foundation once the contract expires. The order is expected to conclude at the end of October 2026. The heavy reliance on a single customer significantly exacerbated the situation.
Apple Order Falls Through, Hitting Battery Manufacturer Hard
Varta does not officially name the major customer in question. However, several reports identify Apple as the previous buyer of the company’s CoinPower button cells. These cells were reportedly used in AirPods.
However, the new generation of products is reportedly no longer to originate in Bavaria. According to reports, future cells are to be sourced from China. Consequently, Varta is losing an order that had long sustained the plant.
Nördlingen Will Not Be Left Entirely Without Battery Production
However, it is important to provide precise context. Varta is not ceasing all industrial activity at the site. The operations affected are the button cell production lines of Varta Micro Production GmbH.
In contrast, production of the V4Smart line in Nördlingen is set to continue. This facility manufactures cylindrical lithium-ion cells for the automotive sector. Since March 2025, Porsche has held a majority stake in V4Smart, while Varta remains a minority shareholder.
Weak Dollar and Price Pressure Exacerbate the Situation
However, Varta is not alone in facing this loss of orders. For years, the company has been grappling with fierce competition from Asia. Compounding this were rising costs and a strained earnings situation.
Insiders also point to the weak dollar. Reportedly, Varta has recently been making barely any profit from its button cells. Consequently, even before the major customer terminated its contract, the production division apparently lacked a stable foundation for profitability.
Job Cuts Become the Next Setback in the Restructuring Process
Varta now intends to work jointly with the works council to find solutions for the affected employees. These solutions may include transfers to other locations. Nevertheless, the decision represents a severe blow for the Nördlingen site.
The situation also highlights a weakness within the German battery manufacturing sector: technical quality offers no protection when major customers opt for cheaper supply chains. As a result, Varta is losing not only 350 jobs but also industrial value creation within Bavaria.