SIEMENS Mobility has begun construction of a €35m production facility for rail traction battery systems in Luhe-Wildenau in southern Germany.

The plant, covering 2ha, will produce complete battery systems for Siemens’ regional trains and locomotives, as well as for external customers. Construction is scheduled for completion in spring 2027, with full production expected to begin in October of that year. The project is expected to create up to 200 jobs.

Siemens will contribute around €22m to the project, while €2.7m is being provided through Bavarian state funding programmes. The remainder will come from project partners Dimonda Investment and Dirnberger Real Estate, which are responsible for site development and construction.

Siemens has been active in battery traction since 2017, notably with its Mireo Plus B regional train, which it has sold to operators in Germany, and which debuted in April 2024. The battery systems on these trains have a typical storage capacity of 500kWh. The company plans to extend its battery technology to freight locomotives using systems capable of storing up to 2kWh.

The new plant will produce up to 120MWh of battery capacity per year in a three-shift operation. It will also produce an in-house battery management system, developed with Munich-based Stercom, to improve safety, efficiency and service life. Battery cells will be sourced from external suppliers including Toshiba, with Siemens conducting system integration.

During the groundbreaking ceremony, Siemens Mobility CFO, Karl Blaim, said the project demonstrated the company’s commitment to Germany as a hub for production and innovation. “We are investing in key technologies, creating high-quality jobs in the region, and strengthening the competitiveness of the domestic rail industry,” he said.