Porsche axes plans to build electric car batteries as demand collapses

Overhaul to trigger job losses as German car giant winds down operations at Cellforce

The German carmaker announced that it will wind down operations at its production subsidiary Cellforce and refocus the division on research and development instead. The Telegraph has the story.

Oliver Blume, Chief Executive of Porsche and parent company Volkswagen Group, said: “Porsche will stop pursuing the production of its own battery cells due to reasons of volume and a lack of scale.”

Porsche confirmed the overhaul would lead to job losses, but it said that some workers would be transferred to PowerCo, a separate battery start-up owned by Volkswagen.

The IG Metall union previously said that around 200 of Cellforce’s almost 300 workforce would be laid off.

Batteries, which are usually the most expensive component of an electric car, have become a key battleground for rival automakers racing to compete in the growing market.

But Western manufacturers have struggled to gain ground against China. Northvolt, the Swedish EV battery-maker, filed for bankruptcy earlier this year, marking a major setback for hopes of a European battery champion.

Read the full story here.