Porsche has announced a strategic pivot in its battery operations, opting to concentrate on research and development (R&D) of battery cells and systems rather than expanding production. This decision comes as the company navigates challenging market conditions, particularly in the US and China, which have not met initial expectations for electric vehicle uptake. The move will involve a socially responsible reduction in staff, with opportunities for affected employees at PowerCo, Volkswagen Group’s battery competence centre.
The decision underscores Porsche’s commitment to electric mobility, with 57% of its European deliveries in the first half of 2025 being electrified vehicles. Despite this progress, Porsche has decided against scaling its own battery cell production due to volume and economy of scale challenges. Dr. Oliver Blume, Porsche’s CEO, stated, “Electromobility will remain an essential drive technology for our sports cars in the future.”
Porsche’s Cellforce Group, initially set to expand battery production, will now focus on R&D. Dr. Michael Steiner, Porsche’s Executive Board Member for R&D, acknowledged the dedication of Cellforce employees but noted the economic impracticality of the original business model. The group’s expertise will continue to be leveraged, with PowerCo placing development orders for high-performance cells.
Additionally, Porsche’s acquisition of V4Smart GmbH & Co. KG’s ultra-high-performance lithium-ion round cells will enhance its battery capabilities. These cells are already used in Porsche 911 GTS models, with further hybrid derivatives in development. This strategic realignment aims to bolster Porsche’s position in the evolving electric vehicle landscape.
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