Porsche is reportedly preparing to almost completely shut down its battery subsidiary Cellforce, with only a small research and development unit expected to remain at the Kirchentellinsfurt site in Swabia. The automaker has declined to comment on the reported staff reductions.
Cellforce, initially a joint venture between Porsche and Customcells to develop high-performance battery cells for electric sports cars, was fully acquired by Porsche in 2023. Earlier ambitions to scale production to as much as 20 GWh have been reversed following a strategic realignment of the company’s battery activities in April 2025. According to Der Spiegel, roughly 200 of the 286 employees at the subsidiary are expected to be laid off.
The shutdown comes after Porsche explored potential partnerships with companies including Northvolt and VW subsidiary PowerCo, but reportedly found no viable path forward. The subsidiary’s failure has been attributed to rising costs from shifting technical cell designs, expensive European manufacturing equipment, and weak sales in key markets such as China. New U.S. import tariffs on electric vehicles also affected the company. Porsche stated that challenging market conditions and declining demand in the fully electric luxury segment are impacting development in the 2025 fiscal year.
The reported cutbacks coincide with Porsche lowering its 2025 revenue forecast to €37 billion–€38 billion, down from an earlier projection of €39 billion–€40 billion, with an expected return on sales of 6.5–8.5 percent, below both prior forecasts and company targets.
In parallel, Porsche continues to develop battery technology through V4Smart, its Varta battery subsidiary, which recently unveiled a second-generation specialized round cell designed for automotive, aerospace, and industrial applications. The new cells incorporate advanced anode material from Porsche partner Group14 and are intended to expand the company’s focus beyond the automotive sector.