Varta files for insolvency as German battery maker's crisis deepens

The parent company of the well-known Varta household battery brand filed an application with the Stuttgart Local Court on Friday to open insolvency proceedings under self-administration. The German battery maker, headquartered in Ellwangen, stated that the filing was triggered by a structural funding shortfall expected from 2027, not an immediate inability to pay its debts.

The company cited significantly worsening market conditions, weaker demand, adverse exchange-rate movements, and most recently "the decision of a key customer to terminate the partnership" as factors affecting its operations. According to Reuters and German media, the key customer is Apple, which has reportedly decided to source rechargeable CoinPower button cells for its AirPods from China.

CEO Michael Ostermann said: "VARTA AG has faced significant challenges in recent quarters. We on the Executive Board and in management are fully aware of our overall responsibility to employees, customers, suppliers, and investors, and are working with all our strength to preserve as many jobs as possible, ensure the company's continued sustainability, and create the best possible prospects for all stakeholders."

Varta became a privately held company after being delisted from the Frankfurt and Vienna stock exchanges in March 2025 as part of an earlier restructuring plan, which was declared complete in April 2025. Reuters also reported that Varta's shareholders, including sports car maker Porsche AG and Austrian investor Michael Tojner, declined to provide additional funding to the struggling company.

Varta said production would continue and employees would keep receiving wages. The profitable household battery business, Varta Consumer Batteries, is legally separate and excluded from the proceedings. However, three operating subsidiaries are covered by separate applications alongside the parent company: Varta Microbattery, Varta Micro Production, and Varta Storage. The CEO noted that the energy storage market remains a future-oriented industry for the company.

The Stuttgart Local Court appointed Tobias Wahl, a lawyer with restructuring firm Anchor, as provisional supervisor. Under self-administration, Varta's management retains control of the company while Wahl oversees the proceedings on behalf of creditors.