Herbert Diess warns that new rules treating electric‑vehicle batteries as grid storage could trigger a costly industrial policy error
Executive summary: Former Volkswagen CEO Herbert Diess, in a Handelsblatt interview, warned that a forthcoming regulation classifying car batteries as electricity storage constitutes a serious industrial policy mistake. The warning highlights potential cost increases for automakers, possible distortions in energy markets, and the risk of misaligned incentives between transport and power sectors.
Who is involved: Herbert Diess, Volkswagen (former leadership), German policymakers, EU regulators, automotive manufacturers, and energy storage operators.
Likely next: Policymakers may revisit the battery storage rule, industry groups could lobby for adjustments, and analysts will monitor any regulatory revisions or market reactions.
Former Volkswagen CEO Herbert Diess, speaking to Handelsblatt, cautioned that a forthcoming regulation classifying car batteries as electricity storage constitutes a serious industrial policy mistake. He argued that the measure could raise costs for automakers, distort incentives between the transport and power sectors, and potentially slow the adoption of electric vehicles. The interview highlights a growing tension between climate‑policy goals and industrial competitiveness in Germany and the broader EU.
What's next — scenarios
Base: Regulation implemented as drafted (45%)
Automakers face increased compliance costs, potentially slowing EV adoption in Germany.
- EU Commission adopts final rule Q1 2027
- German Bundestag passes enabling legislation Q2 2027
Upside: Regulation amended to limit scope (35%)
Compliance costs are mitigated, preserving EV growth projections.
- Industry lobbying results in exemption for vehicle‑only batteries Q4 2026
- Parliamentary committee recommends narrowed definition Q1 2027
Downside: Regulation expanded to include second‑life batteries (20%)
Both new and repurposed EV batteries face storage obligations, raising sector‑wide expenses.
- EU extends rule to second‑life batteries Q2 2027
- Member states adopt stricter national storage targets Q3 2027
Timeline
- — Interview: Herbert Diess: „Wir haben ein Riesenpotenzial einer Strompreissenkung, nicht nur für die Autofahrer“ (Handelsblatt)
Analysis — what this means
Sectors affected
- German automotive industry
- European energy storage market
Historical parallels
- Germany's 2011 Energiewende policy shift
Key entities
Sources
- Interview: Herbert Diess: „Wir haben ein Riesenpotenzial einer Strompreissenkung, nicht nur für die Autofahrer“ — Handelsblatt