Porsche has announced a significant change in its battery strategy, scrapping plans to ramp up in-house production of high-performance batteries at its Cellforce subsidiary. Instead, Cellforce will pivot to become an independent research and development unit amid shifting global market conditions.
The decision, driven by slower-than-expected electric vehicle (EV) demand—particularly in the United States and China—and challenges in achieving economies of scale, will result in approximately 200 job cuts at Cellforce, which formerly employed nearly 300 people. Some affected staff may be integrated into Volkswagen Group’s PowerCo battery division, while Cellforce’s expertise will also support the V4Smart battery unit that Porsche acquired earlier this year.
Porsche CEO Oliver Blume emphasized the economic impracticality of continuing with battery cell manufacturing at current volumes, citing insufficient global demand and cost pressures. Despite this strategic withdrawal from production, Porsche reaffirmed that electrification remains a cornerstone of its future vehicle strategy.
During the first half of 2025, approximately 57% of Porsche vehicle deliveries in Europe were electrified (including hybrids), significantly outpacing the global rate of around 36%. This highlights strong regional adoption despite broader market hesitations.
Michael Steiner, Porsche’s board member for research and development, noted that Cellforce had initially aimed to establish a “start-up factory” in Kirchentellinsfurt with plans to scale up to a second site. However, changes in market dynamics have made such expansion economically unfeasible.
Going forward, Porsche intends to leverage Cellforce’s battery cell and system development expertise to support both its internal electrification efforts and external partners, including PowerCo and V4Smart. This realignment underscores a shift toward collaboration and innovation, rather than vertical integration.
