Constellium's €30M Bet on Europe's Electric Vehicle Future

SINGEN, GERMANY – December 03, 2025 – In a move that signals a significant reinforcement of Europe's burgeoning electric vehicle (EV) supply chain, aluminum giant Constellium has officially inaugurated new, state-of-the-art finishing lines at its Singen plant in Germany. The milestone marks the culmination of a €30 million investment, executed in a strategic partnership with South Korea's Lotte Infracell, aimed squarely at producing high-quality aluminum foilstock for the continent's rapidly expanding battery manufacturing sector.

This is not merely a factory upgrade; it is a calculated play to capture a critical role in one of the most significant industrial transformations of the 21st century. As Europe aggressively pivots towards e-mobility and energy independence, the demand for specialized components like battery-grade aluminum foil is soaring. By localizing production of this vital material, Constellium is positioning its German facility as an indispensable node in a complex, high-stakes value chain that is foundational to the continent's green transition.

Meeting the Surge in Battery Demand

The strategic importance of Constellium's investment cannot be overstated when viewed against the backdrop of Europe's ambitious battery production targets. The European Commission estimates the regional battery market could be worth up to €250 billion annually from 2025 onwards. To meet this, production capacity is undergoing an explosive expansion. Projections show European battery cell production rocketing from just 69 GWh in 2022 to a potential 773 GWh by 2030. Some forecasts, like those from the Fraunhofer Institute, suggest capacity could even approach 1.5 terawatt-hours (TWh) within the next eight years, representing a quarter of the entire global market.

This unprecedented growth is fueled by initiatives like the European Battery Alliance (EBA), which seeks to build a competitive and sustainable battery ecosystem on the continent, reducing its heavy reliance on Asian imports. Central to this strategy is securing a resilient supply of critical raw and processed materials. Aluminum foil is one such material, serving as the essential current collector on the cathode side of a lithium-ion battery cell. Its quality directly impacts the battery's performance, lifespan, and energy density.

The global market for this specialized foil is projected to more than double, growing from USD 1.5 billion in 2023 to nearly USD 3.9 billion by 2033. By establishing advanced production capabilities within the EU, the Singen plant directly addresses the strategic need for a localized, reliable supply, insulating future battery production from the volatilities of global shipping and geopolitical tensions.

A Strategic German-Korean Alliance

At the heart of this initiative is the partnership between Constellium and Lotte Infracell, a subsidiary of the industrial conglomerate Lotte Aluminium. This collaboration is a textbook example of leveraging complementary strengths to secure a market foothold. Lotte Aluminium has been aggressively expanding its battery material business, including building a major battery foil factory in Hungary, as it aims to become a top global supplier.

By partnering with Constellium, Lotte secures a European source for high-quality aluminum feedstock that meets the exacting specifications of its battery-making clients. Constellium, in turn, gains a committed cornerstone customer and a direct conduit into the highly specialized battery value chain. The successful production of the first qualification coil for Lotte Infracell in November 2025 officially cemented this symbiotic relationship.

As Matthew Perkins, Business Unit President for Packaging & Automotive Rolled Products, noted in the company's announcement, “The start-up of the new finishing lines represents a major achievement for our Singen team and a significant step forward in expanding our production capabilities.” This expansion is not just about adding capacity but about mastering the production of a highly technical product for a demanding new market.

Engineering for Excellence and Sustainability

The new facility in Singen is engineered to meet the dual demands of high performance and environmental responsibility. The finishing lines can process aluminum coils up to 2,000 mm wide and 1.3 mm thick, dimensions that cater to the evolving needs of gigafactories looking to optimize their production lines. This technical capability, supported by dedicated logistics and buffer zones, is designed for high productivity and efficiency.

Crucially, the investment also addresses the growing pressure on manufacturers to decarbonize their operations. The aluminum industry is notoriously energy-intensive, making sustainability a key competitive differentiator. The new building incorporates a solar power system expected to generate approximately 760,000 kWh of renewable energy each year. While a fraction of the plant's total consumption, this on-site generation directly reduces its carbon footprint and aligns with the ethos of the green products it helps create. This commitment is further underscored by the EU's new Batteries Regulation, which mandates increasing levels of sustainability and transparency throughout a battery's lifecycle.

“This new capacity reinforces Constellium’s strategic role in supporting the transition to e-mobility and sustainable energy applications,” stated Bernd Honsel, Plant Director at Constellium Singen. “This investment strengthens Singen’s position as a center of excellence for high-performance aluminum products.”

This development transforms the Singen plant from a traditional industrial site into a key enabler of next-generation technology. For the region of Baden-Württemberg, Germany's industrial heartland, investments like these are vital. They demonstrate how established manufacturing bases can pivot to embrace the electric future, securing high-skilled jobs and cementing their relevance in a global economy undergoing profound change. By supplying the building blocks for the batteries that will power tomorrow's vehicles, the new lines at Singen are doing more than just rolling aluminum; they are helping to roll out Europe's clean energy future.