Porsche has decided to abandon plans for electric vehicle battery production, raising concerns about the competitiveness of the European industry.
Cancellation of Battery Production Plans
On Monday, Porsche announced that its subsidiary Cellforce will transition into an independent research and development unit, with no plans for large-scale battery production. This will lead to significant job losses, with about 200 of the nearly 300 positions at the subsidiary expected to be cut.
"Porsche is not pursuing its own battery cell production for reasons of volume and lack of economies of scale," said Oliver Blume, CEO of both Porsche and its parent company Volkswagen.
Volkswagen's New Battery Strategy
While Porsche has abandoned its original battery manufacturing plans, the company emphasized that Cellforce’s technological expertise will not be lost. Instead, the subsidiary will focus on R&D, feeding knowledge into other parts of Volkswagen’s strategy, including its dedicated battery unit, PowerCo.
Impact on the EV Market and Production
Global demand for electric vehicles has slowed in recent months, particularly in China and the United States, prompting automakers to rethink investments and production plans. Porsche's decision further complicates Europe's ambitions for battery manufacturing following the collapse of Swedish battery maker Northvolt.
Porsche's choice to abandon its battery production plans amplifies concerns within the European industry regarding its ability to compete with Asian battery manufacturers.
