Porsche Scraps EV Battery Production Plans, Dealing Blow to Europe’s Battery Ambitions

Porsche AG has abruptly terminated its ambitious electric vehicle battery production initiative through subsidiary Cellforce, marking a significant setback for Europe's aspirations to compete in the global battery market. The German automaker will convert Cellforce into a pure R&D unit, resulting in approximately 200 job cuts from its 300-strong workforce.

The decision reflects fundamental challenges in achieving economies of scale, as articulated by Porsche and Volkswagen CEO Oliver Blume. This retreat comes as Asian manufacturers from China, Japan, and South Korea maintain their stranglehold on lithium-ion battery production, controlling over 80% of global supply.

Europe's battery manufacturing ecosystem suffers another credibility blow following Northvolt's collapse earlier this year. The continent's strategy of government-backed industrialization faces mounting skepticism as major players withdraw from production commitments.