Aachen-based startup Voltfang, which specialises in stationary battery storage systems from requalified electric vehicle batteries, has entered into a partnership with infrastructure investor Palladio Partners to develop and operate large-scale storage facilities in Germany, with planned investments of €250 million by 2029.
Founded in 2021, Voltfang has built a customer base that includes Aldi Nord, McDonald’s, Schaltbau and the Jet petrol station chain. With a new factory in Aachen increasing production capacity, the company is expanding its role from manufacturer to operator of grid-connected storage systems. “Implementing projects of this magnitude requires two things: scalable battery expertise and solid financing. Palladio has excellent access to capital and a deep understanding of the energy markets; Voltfang complements the partnership with technological expertise that is unrivalled in the German market,” said Voltfang founder David Oudsandji.
The partners intend to deploy several hundred megawatts of storage capacity by 2029. Financing will be provided through a Palladio fund focused on infrastructure transformation in Germany. “With the growing demand for electricity storage and the continued decline in technology costs, this is a particularly attractive time to be investing in the expansion of battery storage,” said Oliver Sauer, partner at Palladio Partners. “Voltfang offers a sustainable range of solutions that align very well with our transformation fund and therefore with what our investors are seeking.”
Under the agreement, Voltfang will handle the planning, construction, operation and maintenance of storage facilities, while Palladio will focus on financing and commercialisation. The systems will support the grid by absorbing excess renewable electricity and feeding power back when demand rises, creating opportunities for operators to profit from price differentials in wholesale and balancing markets.
Voltfang, known for its “second life” approach to repurposing used EV batteries, also incorporates “new life” units from surplus production in the mobility sector. A recent project at Stuttgart Airport, for example, uses such batteries. The company says its focus on requalified automotive batteries reflects a sustainable approach, though it does not limit itself exclusively to EV cells.
Germany’s demand for large-scale storage is expected to rise sharply as renewable generation expands and coal and gas plants phase out. The Fraunhofer Institute for Solar Energy Systems estimates that nationwide capacity will need to reach 100 gigawatt hours by 2030 and 180 GWh by 2045. Current large-scale battery storage amounts to only around 3 GWh.