German battery manufacturer Varta has filed for insolvency after losing Apple’s AirPods battery orders and failing to secure additional funding from its major investors.
A spokesperson for the Stuttgart District Court confirmed that four insolvency applications were submitted on July 24. The filings mark another critical stage in the financial crisis facing one of Germany’s best-known battery manufacturers.
Varta produces batteries for wireless headphones, hearing aids, household electronics and residential energy storage systems. Its financial position deteriorated after years of weak demand, supply-chain disruption, strong Asian competition and volatile orders from major customers.
Apple Moves AirPods Battery Orders to China
The most damaging blow came when Varta lost its largest customer for rechargeable CoinPower button cells.
Varta’s highly specialised plant in Nördlingen produced the miniature lithium-ion cells used in Apple’s AirPods. These compact batteries are designed to deliver relatively high energy capacity within the limited internal space available in wireless earbuds and other small electronic devices.
The customer was not officially identified by Varta, but Reuters reported that it was Apple. The supply contract is due to expire at the end of October 2026, with Apple expected to source the cells from China in the future.
Varta previously announced that it would stop button-cell production at the Nördlingen facility and eliminate around 350 positions there and at its headquarters in Ellwangen.
The loss was particularly serious because the production lines had been developed around the requirements of a dominant customer. Once Apple’s orders disappeared, Varta had no alternative buyer capable of immediately replacing the same production volume.
Porsche and Tojner Decline Further Investment
Varta’s existing investors also declined to provide the fresh capital required to stabilise the company.
Porsche and Austrian investor Michael Tojner had previously supported a restructuring agreement intended to reduce Varta’s debt and provide new financing. In October 2024, the two investors agreed to contribute a combined €60 million to the restructuring process.
The earlier rescue plan ultimately failed to create a sustainable financial structure. According to reports, Varta again required funding in the mid-double-digit-million-euro range, with further capital likely to be needed over the longer term.
When Porsche and Tojner declined to inject more money, the company moved toward insolvency proceedings.
The applications were filed under self-administration. Under this procedure, Varta’s existing management can continue running the affected operations while a court-appointed administrator supervises the process. Production does not automatically stop when such an application is filed.
Varta Could Be Divided Between Creditors and Investors
The insolvency process could lead to the Varta group being divided into separate businesses.
A creditor group that includes Deutsche Bank is seeking control of the profitable household battery operation. This business primarily covers familiar consumer products such as AA and AAA batteries and should not be confused with Varta’s residential energy storage systems.
Michael Tojner, meanwhile, has expressed interest in the microbattery division, which manufactures specialised cells for applications including hearing aids.
No final transfer has yet been completed. Any division of the company would depend on negotiations between creditors, investors, administrators and regulatory authorities.
Varta employs approximately 3,260 people and maintains operations in several battery segments, including consumer cells, microbatteries and energy storage technology. The insolvency process will determine which divisions can continue independently and how many jobs can be preserved.
A Setback for European Battery Manufacturing
Varta’s insolvency represents a significant setback for Germany’s battery industry.
The company had been regarded as one of Europe’s leading producers of rechargeable miniature cells at a time when policymakers were seeking to reduce the continent’s dependence on Asian battery manufacturers.
Its crisis also exposes the risks of customer concentration in highly specialised manufacturing. Building production lines around a single technology company can provide rapid growth while orders remain strong. It can also leave a supplier with limited options when that customer changes its sourcing strategy.
For Varta, Apple’s decision did not create the financial crisis on its own. However, losing the AirPods contract removed a major source of revenue at a time when the company was already struggling to fund its operations and complete an earlier restructuring.