Porsche AG is in discussions with potential financial and strategic partners to establish its own electric vehicle (EV) battery factory, estimating a cost of up to €3 billion ($3.3 billion). The luxury car manufacturer is currently considering various locations in close proximity to Germany, the United States, and Canada for the facility. The decision will primarily be based on competitive electricity prices and the availability of renewable energy sources. The planned battery plant is expected to have a capacity of up to 20 gigawatt-hours.
One of the key factors in choosing a location will be the cost of energy. Lutz Meschke, Chief Financial Officer of Porsche, emphasized the importance of getting energy costs right. Porsche has been facing supply-chain challenges, which have led to delays in the launch of some of its electric models, including the battery-powered Macan. This has put pressure on the company to expedite its transition towards electric vehicles. In addition, deliveries of Porsche's only fully electric model, the Taycan, have decreased by 5% in the first half of the year due to lower availability of parts.
CEO Oliver Blume noted that locating additional battery capacity near Germany could be advantageous since most of Porsche's cars are produced there. However, the United States has become increasingly attractive due to lower bureaucratic hurdles and government aid provided under the Infrastructure Investment and Jobs Act.
Porsche already owns Cellforce, a venture focused on developing high-performance battery cells, and has invested in a 1.3 GWh factory in southwestern Germany. The company also procures battery cells from external suppliers and collaborates with Volkswagen AG's battery unit, PowerCo. Blume emphasized the need for flexibility in adopting the right technology, given the significant ramp-up in electrification efforts across the industry. The establishment of their own battery factory will provide Porsche with a range of opportunities to meet their electric vehicle needs effectively.