Amid a softer-than-anticipated global shift toward electric mobility—particularly in key markets like the United States and China—Porsche is shelving its plans to ramp up battery production at its Cellforce Group. Instead of pursuing independent manufacturing, Cellforce will pivot to concentrate on research and development of battery cells and systems.
Key Points of the Strategic Shift:
- Why the change?
Market conditions, especially in the USA and the yet-maturing luxury EV segment in China, have shifted drastically. Porsche concluded that it could no longer justify advancing its in-house battery production due to insufficient volumes and the absence of economies of scale. - Electrification milestones:
Porsche continues to pursue its electrification strategy. In Europe, around 57 percent of all vehicle deliveries in the first half of 2025 were electrified (including hybrids)—surpassing the target set at the company’s IPO. Globally, electrified vehicles comprised 36 percent of deliveries. - Cellforce’s new role:
While the planned expansion—including a second production site—has been abandoned, Cellforce has already developed high-performance cells and established pilot production. Going forward, it will serve as a focused R&D unit. Its expertise will support Porsche’s internal efforts and underpin battery development for Volkswagen’s PowerCo division. Additionally, the know-how will benefit V4Smart—Porsche’s lithium-ion cell business acquired from VARTA earlier in the year—whose batteries are already used in variants of the 911 GTS. - Leadership insight:
Dr. Oliver Blume, CEO of Porsche, reinforced that despite the strategic realignment, electrification remains core to the brand’s future. However, under current conditions, pursuing in-house production is no longer strategically or economically sound. Dr. Michael Steiner, Board Member for Research and Development, voiced the company’s deep appreciation for Cellforce employees’ contributions and emphasized the difficult but necessary nature of the decision.
Edited Porsche Factory Press Release
Pictures & Video courtesy Porsche AG
