Image: Boris Palmer, Mayor of Tübingen, Germany
Porsche AG (OTC: POAHY) will develop and produce high-performance battery cells for electric sports cars under a new joint venture with German lithium-ion specialist Customcells Itzehoe GmbH.
Under the partnership announced Sunday, the luxury automaker and startup company will produce car batteries with higher energy density than prototypes used in Porsche’s current electric cars.
In addition to faster charging times, improved energy density will also reduce the amount of raw material needed in batteries to achieve the same driving range, Porsche said.
Reuters noted the venture aims to cut battery production costs and make electric cars more affordable.
The new entity will play a key role in the “research, development, manufacturing and sales of high-performance cells,” Porsche said. Small scale production is expected to begin in 2024.
Porsche said it is investing a high double-digit million euro sum in the joint venture and will hold an 83.75% stake.
The JV will be called Cellforce Group and will be headquartered in Tübingen in southwest Germany.
In April, Porsche said it plans to spend 15 billion euros ($18 billion) over the next five years to boost its electric mobility and digital services. At the time, the company also said it was in talks to set up collaborations with battery developers but did not comment on specifics.
Many carmakers are trying to reduce their dependence on Asia for batteries as they launch all-electric models to meet stricter CO2 emissions targets in the European Union.
Earlier this year, Porsche’s parent company, Volkswagen Group, announced its plan to assemble six battery factories across Europe and invest in electric vehicle charging infrastructure around the world.
Source: Equities News