Porsche of Germany Challenges Chinese Enterprises and Fails, Officially Abandons Self-Developed Electric Vehicle Battery

The German sports car manufacturer Porsche will no longer continue to focus on the independent production of electric vehicle batteries due to insufficient economies of scale. The subsidiary responsible for battery business at Porsche is facing elimination.

Porsche's CEO Blume confirmed on Monday, August 25, that the company will terminate its plan to independently produce electric vehicle batteries. The reasons include "insufficient production volume and economies of scale." The subsidiary Cellforce, which has been responsible for battery production, will now focus on "research and development work."

Blume said, "Electric powertrain will still be a key drive system for our sports cars in the future." Board member Steiner explained that however, the global electric vehicle market "has not developed as initially expected." Due to lower-than-expected market growth and changes in the market environment in China and the United States, the business model for the planned independent production of batteries "is economically unfeasible."

According to reports, Cellforce has completed partial cell development and started trial production, with the original plan to achieve an annual capacity of 100 megawatt-hours at a factory in southern Germany, sufficient to supply 10,000 Taycans.

Challenges to Chinese Enterprises

For Blume, who also serves as the CEO of the parent company Volkswagen Group, this is a major setback—after investing heavily in his own battery company, no products have been produced so far. According to multiple German media reports, asset write-downs for the Cellforce production facilities alone could reach as high as 295 million euros.

Batteries are usually the most expensive component in electric vehicles. So far, batteries have mostly been produced in Asia (mainly China). According to data from 2024, Contemporary Amperex Technology Co., Limited (CATL) controls nearly 40% of the global power battery market. The company has already invested in building three battery factories in Europe, including two wholly-owned plants in Germany and Hungary, as well as a joint venture plant with Stellantis Group in Spain.

Last week, the German Metal Workers' Union (IG Metall) strongly criticized the restructuring of Cellforce and the related layoff plans. Porsche has now confirmed that layoffs will take place, but has not yet announced specific numbers. According to media reports and union data, about 200 out of the 286 employees at Cellforce are expected to lose their jobs.

Source: DW

Original: www.toutiao.com/article/1841573856206858/

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