Apple is moving away from its longtime German battery supplier. Varta recently shared the tough news that it will cut 350 jobs and shut down a major part of its manufacturing process. The popular tech giant was the main buyer of Varta’s small button batteries, which power wireless earbuds like AirPods. Now, the iPhone maker is shifting its battery orders to a different company based in China.
The sudden loss of its largest client forces factory changes
The German battery maker relies heavily on this single contract to keep its factory in Nördlingen running at full speed. Because Apple decided not to renew the deal, Varta will completely stop making its CoinPower button cells. This specific factory mostly produced the small rechargeable batteries used inside wireless earphones.
The current supply agreement officially expires at the end of October. After that date, the tech brand will get its audio batteries from a new source in China. Varta noted that its local workers are the ones taking the hardest hit from this business change. The job cuts will impact staff at the Nördlingen plant as well as the main headquarters in Ellwangen.
Even with this major setback for button cells, the company still has other projects going on in the same area. A different division that makes larger batteries for sports cars will keep operating as usual. However, losing its biggest buyer forces Varta to rethink how it handles its consumer electronics business moving forward.
