While Germany's automakers are ramping up production of electric cars, most batteries they use are made in Asia, prompting fears that Germany could lose its leadership in the core car technology of the future. Merkel came under fire this month when she admitted Germany was likely to miss the government's target of bringing 1 million electric cars onto the roads by the end of the decade.
Merkel said new technologies sometimes take time to get off the ground and end up being exploited by those other than their original inventors, citing the example of German engineer Konrad Zuse, who developed the first programmable computer in 1941. "This should be a lesson for technology policy. We don't want to experience that again," she said.
In March, Mercedes-Benz owner Daimler said it was speeding up its electric car programme, aiming to bring more than 10 new models to market by 2022 through 10 billion euros ($11 billion) of investment. In Kamenz, Daimler is investing around 500 million euros in its second factory there for lithium batteries, that should be operational by the middle of 2018, quadrupling production.