Porsche acquires majority stake in V4Drive

Sports carmaker Porsche has acquired a majority stake in German battery maker Varta’s eMobility subsidiary, V4Drive.  

In the future, the company will operate under the name “V4Smart”. While VARTA remains a minority shareholder, it won’t exercise any operational influence.  

The agreement is expected to reduce Varta’s debt from €485 million (USD 535 million) to €200 million (USD 217 million).

Varta initiated a restructuring concept in 2023, which included the termination of 800 full-time positions. Recently, the battery maker notified a local court in Stuttgart of its restructuring plans in accordance with the German Corporate Stabilization and Restructuring Act in a bid to avert possible insolvency.

Under the new plan, Porsche and current majority owner Michael Tojner are set to each hold around 32% of the company after participating in a €60 million capital increase, according to a report by pv magazine. Existing lenders will hold the remaining 36% of the company.

“With the implementation of the measures agreed today, the group’s financing and liquidity are now sustainably stabilized and secured for the long term,” said Varta CFO Marc Hundsdorf.

Cells from V4Smart have already made their way into series production at Porsche as booster cells in the 911 GTS models. Production of these cells currently takes place at the Ellwangen site. The production facility there has already been brought to series-production readiness with significant input from Porsche Werkzeugbau GmbH. It is planned that from April onwards, the cylindrical cells will also be manufactured in a new facility at the Nördlingen site, according to a media release.

By the end of 2025, the employees at both production sites are expected to increase to around 375, the German carmaker said.

“The booster cells enable us to bring motorsport technology to our production cars,” said Albrecht Reimold, Member of the Executive Board for Production and Logistics at Porsche AG. “As a key component of the T-Hybrid drive system, they ensure exceptional driving performance from our iconic 911 sports car.”  

Development of the production line at the Nördlingen site has also already been carried out, led by Porsche Werkzeugbau GmbH and supported by other plant engineering companies.

“Through the development of battery production systems, Porsche Werkzeugbau has further expanded its business areas,” said Markus Kreutel, Chairman of the Executive Board of Porsche Werkzeugbau GmbH and future member of the Advisory Board of V4Smart GmbH & Co. KG. “Thanks to the strategic partnership between V4Smart GmbH and Porsche Werkzeugbau GmbH, we are now able to offer our customers the entire process chain for cylindrical cells – from cell chemistry and cell design to the finished cell or complete production plant.” 

Porsche has also announced its intention to acquire a direct stake in Varta. With this step, the German sports carmaker wants to support the restructuring process of the Varta Group. The transaction has not yet been completed.