Porsche Refocuses Battery Strategy on Cell R&D Leadership
Porsche views electromobility as a core drive technology for the future. In response to a slower global ramp-up of electric vehicles and shifting conditions in China and the USA, the sports car maker has realigned its battery strategy and will direct Cellforce Group GmbH to concentrate on research and development of battery cells.
Dr. Oliver Blume: "Porsche is one of the most successful traditional car manufacturers in the transformation to electric mobility. In the first half of 2025, 57 per cent of the vehicles delivered in Europe were electrified, compared to a global electric quota of 36 per cent. 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. Electromobility will remain an essential drive technology for our sports cars in the future."
Porsche will continue to invest in battery cell research and development to support the electric strategy it established in 2019. Among established manufacturers, the brand now leads the way in electrification across many relevant segments. The all-electric Taycan and Macan set benchmarks in performance and charging capability. Further models will follow in the short and medium term, including the all-electric Cayenne and a pure-electric sports car in the 718 segment, which will bring advanced electromobility technology into series production. Because the pace of e-mobility adoption varies widely by region, Porsche will no longer scale Cellforce’s planned battery production and will instead prioritise cell and system development.
While volumes in the USA and China currently trail expectations, Europe recorded strong growth in the first half of 2025. Around 57 per cent of vehicles here were electrified, including hybrids, exceeding the IPO target for Europe. Globally, Porsche achieved an electrification rate of about 36 per cent over the same period. To remain resilient through the transition, the company will keep a flexible powertrain lineup. Its product strategy offers combustion, hybrid and all-electric options in every segment well into the 2030s for two-door sports cars, sports saloons and sports SUVs.
"With the construction of the factory in Kirchentellinsfurt in 2022, we have set an exclamation mark in the industry and for Germany as a business location. Unfortunately, the market for electric vehicles worldwide has not developed as originally thought. The framework conditions have changed fundamentally, and we have to react to them," says Dr. Michael Steiner, Member of the Executive Board for Research and Development at Porsche. "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. In the end, however, we have to conclude that the planned business model is not economically viable."
The original plan envisioned launching the Kirchentellinsfurt facility as a "start-up factory" with approximately 1 GWh of output, followed by scaling at a second site. "From today's perspective, this is not realistic," says Dr Michael Steiner. "The Cellforce Group has successfully developed high-performance cells and set up pilot production, but due to a global lack of volumes, it is not possible to scale its own production to the planned cost position. Therefore, the Cellforce Group should concentrate on research and development work in the future."
Porsche intends to use the expertise built within Cellforce. Dr. Michael Steiner: "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 developing high-performance cells and contribute it to the Group. As such, PowerCo will use the independent R&D unit and place development orders for high-performance cells there."
The Cellforce Group’s know-how can also support V4Smart GmbH & Co. KG. In March of this year, Porsche acquired the business area for ultra-high-performance lithium-ion round cells from the VARTA AG Group. V4Smart cells already serve as booster cells in Porsche 911 GTS models, and further 911 derivatives with performance hybrid are approaching market launch. This approach keeps Porsche focused on electric vehicles and battery technology while aligning production plans with real-world EV demand.