German car manufacturer Porsche has officially canceled its plans to produce high-performance batteries at its subsidiary, Cellforce. Porsche cites weaker demand for electric vehicles and unfavorable market conditions in the United States and China as reasons. Rather than proceeding with mass production, Cellforce will continue operating as an independent research and development unit for battery cells and systems.
Intended large-scale production
Founded in 2021 as a joint venture between Porsche and Customcells, the Cellforce Group aimed to develop high-performance cells for electric vehicles and later manufacture them on a large scale. Construction began in 2022 on a factory in Kirchentellinsfurt, Germany, that was designed as a ramp-up factory with an annual capacity of approximately one gigawatt-hour. A second location was planned to enable production on a significantly larger scale. Through these plans, Porsche intended to develop its own expertise in battery technology and reduce its reliance on Asian suppliers.
Lack of volume and economies of scale
However, Porsche has now announced that its own cell production is not economically viable due to a lack of volume and economies of scale. The automaker claims the global market for electric vehicles did not develop as originally assumed. Nevertheless, Porsche will continue to utilize Cellforceʼs technical expertise, including through orders from Volkswagenʼs battery subsidiary, PowerCo, and the recently acquired V4Smart business unit, which originated from Varta Group. This business unit develops lithium-ion round cells used in Porsche 911 hybrid models. According to industry sources, around 200 of the nearly 300 jobs at Cellforce could be lost, though Porsche itself has not disclosed any figures.
36-percent electrification rate
Despite its withdrawal from battery production, Porsche is emphasizing its commitment to electric vehicles. In Europe, the manufacturerʼs electrification rate reached approximately 57 percent in the first half of 2025 and 36 percent worldwide. Nevertheless, the company is sticking to its three-pillar strategy of combustion engines, hybrids, and electric vehicles.
Sources:
https://newsroom.porsche.com/en/2025/company/porsche-cellforce-group-focusing-battery-activities-40344.html
https://www.reuters.com/business/autos-transportation/porsche-scraps-battery-production-plans-cellforce-unit-2025-08-25/
