ADS-TEC’s 1-Gigawatt Storage Project Nears Building Permit in Germany

Key Facts

ADS-TEC Energy said the permitting authority confirmed that the application documents for the SKM battery storage project in southern Germany are complete, and that a building permit is expected soon, though it has not yet been issued. The project is planned to have 1 gigawatt of power capacity and 4 gigawatt-hours of storage, making it one of Europe’s largest battery projects, according to the company. The regulatory progress follows the project receiving a general commitment for grid connection, while financing procedures are still underway. The company has made the project’s start conditional on securing final financing, tying its timeline to the completion of permitting and funding. The company’s shares closed at $9.3 on October 27, according to EL7 data.

In its September results update, the company said the project had received a general commitment for grid connection and that financing was underway. It also targeted a project start during 2026, subject to securing final financing, making the anticipated building permit an important stage in a process that is not yet complete. The company did not specify a final date for closing the financing or starting construction in its disclosure. This means that completion of the application documents does not amount to final building approval and does not, on its own, settle the timing of execution. Partnerships and financing remain among the issues that will determine the transition from development to execution.

ADS-TEC plans to sell a majority stake in the project while retaining a role as a long-term partner, according to the company’s perspective presented in the evidence. This structure offers a way for it to participate in a large infrastructure asset without assuming it will retain full ownership of the project. But the company’s share of future revenue has not yet been settled, so the project’s contribution to its income cannot be estimated from the available information. This financial uncertainty puts the completion of financing and partnerships alongside permitting progress in importance. CEO Thomas Speidel said the SKM project gives the company “an exceptional position spanning decades in Germany’s energy infrastructure.”

The importance of storage lies in its role in balancing excess solar and wind power and supporting the stability of Germany’s grid, according to the project context presented by the company. ADS-TEC describes the project as supporting grid flexibility and resilience, linking it to the country’s critical energy infrastructure. In a September disclosure, the company said the government had classified the project as being of “overriding public interest” because of its contribution to strengthening the resilience of critical infrastructure. The project had also received unanimous approval from the city council, while the transmission system operator provided a positive assessment of connection to the extra-high-voltage grid. Grid connection for the project is targeted for 2029.

The project’s progress comes as ADS-TEC faces a decline in operating revenue. First-half 2026 revenue fell to 7.4 million euros, compared with 14.6 million euros in the same period of 2025, according to the company’s disclosure. Operating loss, meanwhile, narrowed 12% year over year. The company attributed the higher net loss mainly to a non-cash revaluation of warranty liabilities. These results provide financial context for a project whose financing is still in progress, while disclosures do not specify the amount or timing of its future contribution to revenue.

The company had kept its target of starting the project in 2026 conditional on securing final financing, while the building permit expected soon remains a regulatory step that has not yet become final approval. After financing and permits are complete, plans target connecting the project to the grid in 2029. The disclosure gave no more precise date for closing the financing or beginning construction. Nor did the company’s text specify ADS-TEC’s share of future revenue after the sale of a majority stake. The next stage therefore remains dependent on meeting these conditions before moving to execution and grid connection.