Battery maker, Varta has are planning to mass produce lithium ion battery cells for electric cars.

The German manufacturer has agreed a cooperation deal with Germany's Fraunhofer Institute, a scientific research body to produce battery cells for EVs as a way to reduce German automakers' dependence on Asian suppliers.

Varta are anxious to gain technical advantages in battery cell production over Asian manufacturers and along with chemical giant BASF and Ford's German subsidiary Ford-Werke GmbH are among companies involved in talks with Germany's Economy Ministry about building local battery cell alliances.

Varta is the only company in Germany with experience in mass production of battery cells and this reduces the risk of market entry in new areas such as large lithium ion battery cells for electric cars.