Friday, July 12, 2024

Porsche in Talks to Acquire Majority Stake in Varta’s EV Battery Unit

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Porsche is actively negotiating to acquire a controlling stake in Varta’s electric car battery business, V4Drive, as part of its strategic move into the electric vehicle (EV) battery market, sources familiar with the matter reported on Tuesday.

According to statements from both companies, Porsche and Varta have signed a non-binding letter of intent to explore the acquisition of V4Drive, Varta’s subsidiary specializing in advanced EV battery technology. The negotiations are ongoing, with Porsche set to potentially invest through a capital increase following the initial outsourcing of V4Drive from Varta.

See also: Porsche Recalls Taycan Models Over Front Brake Hose Issue

Varta, known for its innovations in battery technology, introduced the V4Drive cell designed for electric vehicles in the 21700 format back in 2021. The company aimed to position these cells as crucial components for high-performance and sports vehicles, as well as for energy storage in hybrid vehicles.

“Varta’s round cell formats offer excellent alternatives for battery electric vehicles in the performance sector due to their unique properties,” former CEO Herbert Schein stated during the initial launch phase.

See also: Porsche Expands EV Charging Network with ChargePoint Integration

While Varta temporarily paused automotive sector plans in late 2022 due to market conditions, interest in V4Drive’s capabilities remained strong. Porsche, which had already placed orders for V4Drive cells in 2021, continued to express keen interest in advancing its EV battery capabilities.

Meanwhile, Porsche has been developing its own battery expertise through its subsidiary Cellforce, initially in partnership with Customcells and now fully owned by Porsche. The company is constructing a pilot plant near Reutlingen with plans for significant expansion, aiming for a production capacity of up to 20 gigawatt-hours.

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