Just a few months ago, Varta announced that it had finalised its restructuring and was experiencing stable growth once more. However, the German battery manufacturer is now seeking court protection once again. This is most likely due to the end of its partnership with Apple.
Varta has filed an application with the Stuttgart District Court to open insolvency proceedings as part of a process known as ‘voluntary restructuring’. Varta emphasises that it has not lost its ability to meet its current obligations and that production and payment of wages are continuing without disruption.
According to the company, the decision is not due to an immediate liquidity crisis, but to an anticipated financial shortfall set to arise from 2027 onwards.
The management board cites deteriorating market conditions, weaker demand, unfavourable exchange rate movements, and the loss of a key customer as reasons for the anticipated shortfall.
Photo credit: Varta
Apple has chosen China. The tech giant is turning its back on Varta
According to reports from Reuters and the German media, this client is Apple. It is said to have decided to transfer production of CoinPower button cells, which are used in AirPods, to Chinese suppliers. This is another setback for the German manufacturer, which has long struggled with declining profitability in the microbattery segment.
The financial problems have also been exacerbated by shareholders’ refusal to provide additional funding. According to Reuters, both Porsche AG and the Austrian investor Michael Tojner have refused to inject further capital into the company. Consequently, Varta has been forced to embark on yet another restructuring process.
Varta has faced serious challenges in recent quarters. ‘As the board and management, we are fully aware of our responsibility towards our employees, customers, suppliers and investors. We are doing everything we can to preserve jobs, ensure the company’s continued operation and create the best possible prospects for all stakeholders,’ says Michael Ostermann, CEO of Varta.
Production continues, but the future remains uncertain
The company assures us that these measures do not mean a halt to operations. The plants are operating as normal and employees are still being paid. Importantly, the profitable business relating to the production of consumer batteries sold under the Varta Consumer Batteries brand has been excluded from the proceedings. However, the proceedings cover the parent company and three operating entities: Varta Microbattery, Varta Micro Production and Varta Storage.
The CEO maintains that the energy storage segment in particular remains promising and is set to play an important role in the company’s future. Tobias Wahl of the law firm Anchor has been appointed by the court as provisional administrator to oversee the proceedings. Under the voluntary restructuring model, however, day-to-day management will remain in the hands of the current management team.
This is the second crisis in two years
This is already Varta’s second major crisis in a short space of time. The company was delisted from the Frankfurt and Vienna stock exchanges in March 2025 as part of an earlier recovery plan, the completion of which was announced just one month later. Recent events, however, show that the restructuring did not resolve the underlying business problems.
According to Reuters, the company’s operations may be split up in future. The most profitable consumer battery segment has reportedly attracted the interest of major creditors, including Deutsche Bank, while Michael Tojner is said to be considering taking over the microbattery business. The final form of the restructuring depends on the court’s decision and an agreement with creditors, but it is clear that one of Europe’s best-known battery brands is entering an exceptionally difficult phase in its history.
