Porsche AG (XFRA:PAH3) has announced a strategic shift in its electric vehicle (EV) operations, halting plans to expand high performance battery production at its Cellforce subsidiary. The decision comes in response to weaker than expected EV adoption in key markets such as China and the United States.
The German automaker stated that the planned expansion was no longer economically viable. Instead, Cellforce will pivot to focus exclusively on research and development, concentrating on advanced battery cell and system technologies.
This change in direction will result in workforce reductions at Cellforce. However, Porsche noted that affected employees may find opportunities within PowerCo, the battery division of Volkswagen Group. Porsche highlighted significant regional disparities in EV demand. While Europe has experienced robust growth in the first half of the year, sales volumes in China and the U.S. have lagged behind projections, influencing Porsche’s decision to recalibrate its battery strategy.