Porsche scales back battery production plans, shifts Cellforce focus to R&D
Porsche is reorganising its battery operations in response to slower-than-expected growth in electric vehicle markets, particularly in China and the United States. The company says that its subsidiary Cellforce will end plans to scale up production of high-performance batteries and instead focus on R&D of battery cells and systems.
The decision follows a reassessment of market conditions that Porsche says have changed significantly since its original plans were set. While Europe has shown strong momentum — 57% of Porsche vehicles delivered in the region in the first half of 2025 were electrified — demand in the US and the Chinese EV segment has lagged behind expectations.
“Porsche is one of the most successful traditional car manufacturers in the transformation to electric mobility,” said Porsche CEO Dr. Oliver Blume, in a press release. “ However, due to challenging conditions, particularly in our main markets of the USA and the not yet developed Chinese electric luxury segment, we are reorganising our battery activities and focusing on cell and system development. For volume reasons and a lack of economies of scale, Porsche is no longer pursuing its own production of battery cells.”
The Cellforce Group, with its battery plant in Kirchentellinsfurt, had originally planned to produce about 1 GWh of high-performance battery cells and later scale production at a second site. According to Porsche’s head of R&D, Dr. Michael Steiner, these plans are no longer economically viable.
“Unfortunately, the market for electric vehicles worldwide has not developed as originally thought,” Steiner said. “It is with great reluctance that we take this step, and we are aware that the employees of the Cellforce Group have put their heart and soul into the development of high-performance batteries.”
The company confirmed that staff reductions at Cellforce will be carried out in a socially responsible manner, with Volkswagen Group's PowerCo offering to assist suitable employees with job opportunities.
Despite abandoning large-scale cell production, Porsche emphasised its continued commitment to electric mobility. The company plans to introduce more all-electric models.
“We will continue to invest in all-electric models with high-performance batteries in the future. The new R&D unit can play an important role in this. Here we bundle our experience in the development of high-performance cells and also contribute this to the Group,” Steiner concludes.
