On the Dash:
- Porsche is dropping Cellforce battery production amid slowing EV demand.
- Roughly 200 of 300 jobs will be eliminated.
- Cellforce will become an R&D center, with some roles moving to Volkswagen units.
Porsche announced on Monday that it is abandoning its plans to produce high-performance batteries at its subsidiary, Cellforce Group, citing slowing demand for electric vehicles and shifting conditions in China and the United States.
The move will significantly reduce staff at Cellforce. An unnamed source confirmed to Reuters that about 200 of the 300 jobs at the facility will be eliminated, and Porsche said that it will handle the reductions in a “socially responsible” manner.
Despite the realignment, Porsche remains committed to electrification in Europe. During the first half of 2025, more than half (57%) of its European deliveries were electrified.
“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,” Porsche AG CEO Oliver Blume said. “For volume reasons and a lack of economies of scale, Porsche is no longer pursuing its own production of battery cells.”
The company will continue investing in high-performance battery cell research and development. Cellforce will be transformed into an independent R&D center, and some jobs may transition to support Volkswagen’s PowerCo battery unit and V4Smart, a battery unit acquired from Varta.
