Porsche to predominantly manage battery affiliate company - Porsche to substantially dismantle battery affiliate company
Porsche is set to largely shut down its battery subsidiary, Cellforce, resulting in the loss of nearly 200 jobs out of the current 280 employees. The decision comes as the sports car manufacturer adjusts its battery strategy, moving away from in-house mass production towards a focus on research and development (R&D) and collaboration within the Volkswagen Group ecosystem.
The primary reasons for this shift are weak electric vehicle (EV) demand, particularly in the Chinese market, and the inability to achieve the scale required for cost-effective, large-scale battery production. Porsche announced in late April 2025 that it would not continue to operate Cellforce independently, effectively ending the plan to expand its capacity from initially modest plans to a previously envisioned 20 GWh scale.
Regulatory hurdles and diminishing momentum for European battery sovereignty likely contributed to the challenges facing the expansion. Competition from Chinese battery giants and bankruptcies of comparable European ventures, such as Northvolt, reflect broader industry difficulties.
Approximately 200 of the 286 Cellforce employees face layoffs, with only a small group (around 80 staff) continuing in R&D roles at the Kirchentellinsfurt site in Swabia. Some employees will be offered positions within Volkswagen Group’s PowerCo battery startup, reflecting a consolidation of battery efforts under VW’s umbrella.
Reports suggest that BMW and some defense companies have shown interest in the Cellforce facility, possibly to develop batteries for niche applications like military drones. However, no concrete buyer has emerged yet. Porsche’s move appears less about asset sale and more about strategic withdrawal, with no current signs of third-party acquisition or restart of large-scale production.
Porsche's development board member, Michael Steiner, is expected to speak at a general assembly on Monday. Porsche CEO Oliver Blume has informed the state government of Baden-Württemberg about the plan. The settlement of Cellforce was supported with public funds, with around 60 million euros announced, although it remains unclear how much money has actually been paid out from these funds.
[1] Autocar Professional [2] Reuters [3] Electrive [4] Bloomberg
