Automotive industry - Porsche wants to take over Varta's e-car battery business
Porsche, the sports car manufacturer, is set to buy Varta's electric car battery business. The companies have already signed a non-binding intent agreement regarding a potential majority investment in Varta's subsidiary V4Drive. Varta announced this in Ellwangen at night.
The companies have agreed to initially spin off the Varta subsidiary. Porsche, a Volkswagen Group subsidiary, would then participate in a capital increase in the second step. Varta did not disclose financial details. Whether the deal goes through reportedly depends on various factors, including a thorough examination of Porsche's books.
Varta has been in crisis for some time
The battery manufacturer has been in crisis for some time due to declining business. The demand for small lithium-ion button cells, for example, for headphones, is fluctuating. Varta also complained about cheap competition from China and ongoing supply chain problems. To make things worse, hackers attacked Varta's computer systems in February and disrupted production for several weeks.
Varta only met its sales targets in June. Previously, the company had admitted that its own restructuring concept no longer sufficed to return to the planned profitable growth trajectory by the end of 2026.
The battery named V4Drive was supposed to open up new business opportunities in electromobility for the company. For a long time, it was speculated that Porsche could be the first customer for Varta's battery cells.
Porsche plans its own battery cell production
The Zuffenhausen-based company plans to set up its own battery cell production with partners. Earlier reports indicated that the sports and off-road vehicle builder intends to establish production in the coming years with a capacity of 10 to 20 Gigawatt-hours per year. This would theoretically be enough for 200,000 cars with a battery capacity of 100 Kilowatt-hours. Porsche sold around 320,000 cars in 2023, but the majority still runs on combustion engines.
For 20 Gigawatt-hours, investments of two to three billion Euros would be necessary, it was said. Porsche intends to find partners for this. Where such a cell production will take place is still unclear. In addition, Porsche also wants to work with battery company PowerCo, the Volkswagen Group's parent company.
- The sports car manufacturer Porsche, being a subsidiary of the Volkswagen Group, operates within the automotive industry based in Germany.
- Varta, a crisis-stricken battery manufacturer located in Baden-Württemberg, has seen declining business in the electrical industry due to fluctuating demand for small lithium-ion button cells and competition from cheap Chinese brands.
- The company Varta announced its potential collaboration with Porsche, aiming to sell its electric car battery business, with a focus on the V4Drive subsidiary.
- Stuttgart-headquartered Porsche plans to invest in Varta's V4Drive subsidiary, aiming to progress in vehicle construction and the development of electric sports cars.
- Beyond this, Porsche intends to establish its own battery cell production in partnership with other companies, targeting a production capacity of 10 to 20 Gigawatt-hours per year for electromobility vehicles.
- Volkswagen Group's Varta has highlighted other business opportunities with its battery named V4Drive, sparking speculation that it could potentially supply battery cells for Porsche's sports cars.
- Meanwhile, Porsche plans to collaborate with battery company PowerCo to further explore the possibilities of advancing in the automotive industry, potentially increasing its presence in electric vehicles and the sports car market.
