Siemens Mobility has started construction of a new facility to manufacture battery systems for rail vehicles in Luhe-Wildenau, Bavaria, Germany.

The total investment in the project amounts to about €35m ($41m). Of this, Siemens Mobility is allocating around €22m.

Siemens Mobility’s funds will support the development of a modular battery family, and a new battery management system (BMS) built in collaboration with Stercom, a company based in Munich. The BMS is designed to monitor and control the batteries, stated Siemens.

Additional funds are being directed towards production and automation technologies, including welding processes, noted the company.

The Free State of Bavaria is contributing €2.7m through state funding programmes.

The facility, which will occupy around 20,000m², is planned to employ up to 200 people. It will produce battery systems for the company’s regional trains, locomotives, and external customers.

The construction of the plant is scheduled to complete in spring 2027, with commencement of series production planned in October of the same year.

Siemens Mobility CFO Karl Blaim said: “With the new battery system production facility in Luhe-Wildenau, we are making a clear commitment to Germany as a production and innovation hub.

“We are investing specifically in key technologies, creating high-quality jobs in the region, and strengthening the competitiveness of the domestic rail industry.”

Upon becoming fully operational, the factory is planned to reach an annual output of up to 120MW of battery capacity with three-shift operations.

Battery cells for the systems will be supplied by external companies such as Toshiba.

Siemens Mobility will handle the integration of these cells into the final systems.

The pre-assembly of battery systems already takes place at the Luhe-Wildenau location, and the new facility will “establish full-scale system production” at the site.

Bavarian Economic Affairs State Minister Hubert Aiwanger said: “This project will drive Bavaria forward, both technologically and economically. The production of state-of-the-art train batteries is a key, future-oriented field that will benefit not only Luhe-Wildenau and the Upper Palatinate, but Bavaria as a whole.

“Siemens Mobility is developing battery systems here that combine strong acceleration performance with high energy capacity for long-distance travel, so we can look forward to more powerful and efficient trains.”

The development of the site involves cooperation with Dirnberger Real Estate and DIMONDA Projektbau. These companies are responsible for site management and project delivery.

In August this year, Siemens Mobility secured a contract with the Regie Autonome des Transports Parisiens (RATP) to fully automate Paris Metro Line 13 using its advanced CBTC GoA4 technology.