Germany Backs €170M Transformation Projects in Coal Regions

Germany’s Federal Ministry for Economic Affairs and Climate Action is allocating €170 million under its STARK program to fund seven transformation projects in former coal regions, triggering €600 million in investments and up to 3,600 new jobs.

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The German Federal Ministry for Economic Affairs and Climate Action has announced support for seven transformation projects in former coal regions, providing approximately €170 million under the STARK program. These public funds are expected to trigger around €600 million in total investments, creating some 600 new industrial jobs and up to 3,000 positions across upstream and downstream supply chains.

In the Rhenish mining region’s Chempark Dormagen, start-up Cylib will build a battery recycling facility. At the Central German chemical park in Bitterfeld-Wolfen, AMG will establish a multi-production plant for battery-grade lithium salts. In the Lusatian Schwarze Pumpe industrial park, Altech Batteries GmbH will construct a factory for stationary energy storage systems using salt-based materials. Alongside these projects, four additional initiatives by small and large enterprises across the former coal areas will advance Germany’s industrial realignment and strengthen national supply chain resilience.

Federal Minister for Economic Affairs and Climate Action, Katherina Reiche, emphasized that the funded initiatives will help convert coal regions into industrial hubs of the future. “By promoting battery cell production, recycling, and other key technologies, we are fostering new value creation, secure jobs, and technological sovereignty for Germany,” she said. “In times of global uncertainty, this is a strong signal—and we remain a reliable partner for these regions.”

Regional leaders also voiced their support. North Rhine-Westphalia’s Prime Minister Hendrik Wüst noted that the state’s four selected projects will drive innovation, sustainable growth, and future-proof employment in areas most affected by hard-coal phase-out. Saxony-Anhalt’s Minister-President Reiner Haseloff highlighted Bitterfeld-Wolfen’s role as a model for combining industrial value creation with sustainable production. Lower Saxony’s Prime Minister Olaf Lies underscored the significance of funding for the Wilhelmshaven-Friesland region: “Investing in energy-efficient production lines for battery and wind-turbine components translates the energy transition into regional economic strength.”

The STARK program was expanded in 2024 to include capital grants for companies. The ministry plans to issue a new funding announcement in 2026. Federal and state authorities collaborated on project selection and continue to advise businesses on site choices and implementation.

Source: Federal Ministry for Economic Affairs and Climate Protection

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