Varta plant closure confirmed after Apple ends supply contract
Varta plant closure in Nördlingen announced after Apple ends its supply deal; 350 jobs will be affected and the site will be wound down by October 31, 2026.
Varta has announced the planned closure of its battery factory in Nördlingen after a major customer ceased orders, marking a significant step in the company’s ongoing restructuring. The Varta plant closure — confirmed by CEO Michael Ostermann — follows the termination of a supply relationship that had centred on button cells for Apple headphones. The company said the contract runs through October, and the factory will be dismantled rather than entering insolvency proceedings.
Decision by major customer prompted closure
Varta’s leadership attributed the move directly to the loss of a single, large account that made continued operation economically unviable. CEO Michael Ostermann told staff and local officials that despite recent efforts to attract new customers, output at Nördlingen could not be scaled to sustainable levels without that business. Management said the contract with the unnamed client — widely reported to be Apple — remains in force until the end of October 2026, after which the site will be closed.
Impact on workforce and local community
The Nördlingen plant employs roughly 350 people who will lose their positions when production stops. Varta said it will seek “socially acceptable solutions,” including redeployment of some employees to other company locations, but acknowledged that talks were at an early stage. Local authorities and regional politicians have been notified, and Bavaria’s economy minister described the announcement as a hard blow for the region.
Technical specialization limited alternative uses
Company statements indicate the Nördlingen facility is highly specialised and focused almost exclusively on rechargeable “CoinPower” button cells used in certain headphone models. Varta said it examined possible repurposing of the site, but found that short-term retooling or conversion to different battery types is not feasible given the plant’s configuration. That technical narrowness left the firm with limited options once the customer relationship ended.
Consolidation to Ellwangen to absorb some demand
Varta plans to shift production needs to its Ellwangen site, which the company says can meet demand from newly acquired clients. Ellwangen is reported to have a capacity of roughly eight million cells per year, and management argued the facility’s capabilities make it more economical to concentrate manufacturing there. Varta stressed the move is intended to preserve operational continuity for other product lines while reducing fixed costs associated with running multiple sites.
Reported shift to Chinese supplier driven by price factors
Industry reporting has suggested the departing customer will instead source batteries from a Chinese supplier, with price cited as the decisive factor in the switch. Varta representatives and outside analysts have said competing vendors matched or undercut Varta on cost despite comparable quality, tipping the procurement decision in favour of lower-priced alternatives. The change underlines the intense margin pressures in battery supply chains for consumer electronics.
Company history and recent financial troubles
Varta has been working to stabilise its business since a difficult 2024 when it entered a court-supervised restructuring process to avoid insolvency and remove legacy shareholders. The company recorded a substantial loss that year and later announced a multi-month internal reorganisation intended to restore profitability. Management has framed the Nördlingen closure as an unfortunate but necessary step in implementing a leaner manufacturing footprint.
Regional reaction and next steps
Local and state officials have urged Varta to accelerate support measures for affected workers and to explore any potential buyers for the physical site or equipment. Varta has committed to handling the wind-down without filing for insolvency and said it will comply with legal obligations toward employees and creditors. The firm added that discussions with new and existing customers continue, but that the economic realities at Nördlingen made the timing of the decision unavoidable.
The announced closure of the Nördlingen plant highlights the vulnerability of specialised suppliers whose fortunes are closely tied to a single large customer. Varta executives said the company will now focus on consolidating manufacturing where capacity and demand are better aligned and on pursuing commercial opportunities that diversify its client base.
