Porsche has long positioned itself as one of the more aggressive legacy automakers in the EV transition. The Taycan was early proof that Stuttgart could build an electric car that feels every bit like a Porsche. But even for one of the industry’s most profitable sports-car brands, reality is catching up: building batteries at scale isn’t easy, and the global EV ramp-up isn’t unfolding as quickly—or evenly—as once hoped.
This week, Porsche confirmed that its Cellforce Group subsidiary will abandon plans to scale up high-performance battery production, instead pivoting to a pure research and development role. The Kirchentellinsfurt facility, once envisioned as a “start-up factory” producing around 1 GWh of cells annually with expansion to follow, will remain a lab rather than a factory.
Why the Pivot?
The short answer: volumes, or the lack thereof.
Europe has been Porsche’s strongest EV foothold, with electrified models making up 57 percent of deliveries in the first half of 2025—beating even its own IPO targets. Globally, however, Porsche’s EV mix stands at just 36 percent. In the U.S., demand has been slower than anticipated. In China, the electric luxury segment Porsche depends on simply hasn’t materialized at the pace analysts once predicted. Without the economies of scale needed to bring down costs, in-house battery production no longer looks like a viable business case.
Michael Steiner, Porsche’s board member for R&D, put it bluntly: “Unfortunately, the market for electric vehicles worldwide has not developed as originally thought. The framework conditions have changed fundamentally and we have to react to them.”
What Happens to Cellforce?
Rather than winding it down entirely, Porsche is reshaping Cellforce into a leaner, research-focused unit. The company says it will continue investing in high-performance battery cell technology, with development orders also expected to flow in from PowerCo—the Volkswagen Group’s battery arm. Staff reductions are on the table, though Porsche stresses they’ll be handled “in a socially responsible manner,” with affected employees potentially finding roles within PowerCo.
It’s not all bad news: Cellforce’s work isn’t disappearing. The know-how is already trickling into production cars, like the ultra-high-performance lithium-ion round cells used as booster batteries in the Porsche 911 GTS hybrid. Additional 911 derivatives featuring performance hybrid systems are right around the corner.
Porsche’s EV Roadmap
Despite the scale-back, Porsche insists it remains fully committed to electrification. The Taycan and new Macan EV continue to set benchmarks for performance and charging speed in their segments. An all-electric Cayenne and a 718 successor are next in line.
But unlike some rivals, Porsche isn’t going all-in on EVs just yet. Instead, it’s sticking to a “three-lane highway” strategy: combustion, hybrid, and EVs in every major segment through at least the 2030s. That means a world where you can still buy a gas-powered 911 alongside a hybrid Panamera or an all-electric Cayenne.
CEO Oliver Blume framed it this way: “Electromobility will remain an essential drive technology for our sports cars in the future. But for volume reasons and a lack of economies of scale, Porsche is no longer pursuing its own production of battery cells.”
The Takeaway
Porsche is learning the same lesson that Ford, GM, and other automakers are grappling with: EV adoption is not a one-size-fits-all story. Europe is charging ahead, but U.S. demand is volatile, and China’s luxury EV scene remains a work in progress. Betting billions on full-scale in-house battery production without guaranteed volumes is a gamble even Porsche won’t take.
Instead, the company is falling back on what it does best—engineering—and leaving the heavy industrial lifting to partners with deeper pockets and bigger factories. That may not make Porsche a battery powerhouse, but if it results in faster, longer-lasting, and more exciting EVs, enthusiasts won’t mind one bit.
Source: Porsche
