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Porsche has taken a majority stake in Varta’s e-mobility battery unit as the German automaker seeks to secure its supply of high-performance cells for its electric vehicles.
Porsche on March 1 acquired majority control of Varta’s V4Drive Battery subsidiary, which makes lithium ion cylindrical cells. Varta, a German battery maker, will retain a minority stake with no operational influence.
To reflect the move, V4Drive will be rebranded V4Smart.
Starting in April, the cells will be produced at a new facility in Nördlingen, Germany, as well as the existing production site in Ellwangen.
Porsche also said it will continue to acquire a stake in Varta, which will help the supplier stabilize its finances. The company has been bruised by poor investment choices, including an expensive but underwhelming foray into V4Drive-branded batteries for hybrid sports cars.
Varta powers the 911
Varta’s battery cells are already used to provide extra power in Porsche 911 GTS models.
“The booster cells enable us to bring motorsport technology to our production cars,” Porsche board member for production Albrecht Reimold said in a release. “As a key component of the T-Hybrid drive system, they ensure exceptional driving performance from our iconic 911 sports car.”
The partnership with Varta will enable Porsche to provide the entire process chain for cylindrical cells, from cell design to production, Porsche said.
Essentially, the move will offer the automaker direct access to advanced lithium ion battery technology to secure a stable supply of high-quality battery cells, helping the German automaker to manage supply chain risks and even lower production costs as it focuses on electrification.
Porsche pursues own battery strategy
Porsche has been developing its own battery strategy to complement the plans made by parent Volkswagen Group. This includes Porsche building high-performance cells via its high-performance battery maker, Cellforce. The company has also been looking for partners to support a €3.3 billion ($3.5 billion) 10-29 gigawatt-hour factory site.
Swedish battery developer and manufacturer Northvolt’s filing for bankruptcy in the U.S. delivered a significant blow to Porsche’s plans for its electric successors to the 718, namely the upcoming Boxster and Cayman EVs.
Porsche relied exclusively on Northvolt as the sole supplier of high-energy-density cells for the vehicles’ battery packs, according to German business newspaper Handelsblatt. This delayed the timeline of the vehicle launches and added uncertainty to Porsche’s supply chain strategy.