Porsche AG said on Monday it will restructure its high-performance battery subsidiary Cellforce, shelving plans to scale up production and instead turning it into an independent research and development unit, citing weaker-than-expected demand for electric vehicles in some key markets.
The move marks a shift from Porsche’s original plan to expand Cellforce into a full-scale production operation, including a planned “start-up factory” in Kirchentellinsfurt, Germany. The company said some of the nearly 300 jobs at Cellforce may be transferred to Volkswagen Group’s battery arm PowerCo, while Cellforce’s expertise will also support V4Smart, the battery unit acquired from Varta earlier this year.
“Due to a lack of volume worldwide, it is not possible to scale up its own production to the planned cost position,” said Michael Steiner, Porsche executive board member for research and development. He added that while the decision was difficult, it reflected changed market conditions.
CEO Oliver Blume underscored Porsche’s continued commitment to electrification despite the shift. “For volume reasons and a lack of economies of scale, Porsche is no longer pursuing its own production of battery cells. Electromobility will remain an essential drive technology for our sports cars in the future,” he said.
Porsche said electrified models accounted for about 57% of deliveries in Europe in the first half of 2025, compared to a global share of 36%. The company plans to continue rolling out all-electric models, including versions of the Cayenne and 718 sports car, while maintaining a flexible strategy that includes combustion, hybrid and all-electric powertrains into the 2030s.
Steiner expressed appreciation for Cellforce staff and their contributions. “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. My special thanks go to them,” he said.