Porsche has pulled the plug on its ambitious battery production plans, shifting its Cellforce unit into an R&D role instead. The move reflects slowing demand for electric cars and tougher conditions in key markets like China and the United States. On one hand, it shows people aren’t as interested in EVs as Porsche had anticipated. On the other hand, it means hundreds of workers are left facing layoffs.
Good News For Gearheads
For buyers, especially car enthusiasts, the push toward electrification has often felt a little forced. Porsche’s decision to scale back proves that even a brand with strong EV sales can’t make battery production work at today’s volumes. Demand is simply not there. It also means the ICE-powered 911 is here to stay for a while longer, even if it is a hybrid. CEO Oliver Blume recently pointed out that while 57 percent of Porsche’s European sales in the first half of 2025 were electrified, the numbers in the United States and China fell far short of expectations. That gap highlights a key truth about EV adoption: it is not happening at the same pace everywhere.
The Human Cost Behind the Decision
The good news quickly fades when looking at the workforce. According to German newspaper Der Spiegel, about 200 of the 286 employees at Cellforce’s Kirchentellinsfurt site will lose their jobs. Porsche says the staff reductions will be handled responsibly, and Volkswagen’s PowerCo may absorb some of the affected workers. Even so, it is a major setback for people who were hired to build what was once seen as the future of German battery technology.
Porsche’s EV Future, With Caveats
Despite abandoning in-house battery production, Porsche insists its electric ambitions are still alive and well. The Taycan and the new Macan EV have been surprisingly successful, and are arguably some of the least boring EVs money can buy, while an electric Cayenne and a 718-based sports car are on the way. Instead of building its own cells at scale, Porsche will continue developing high-performance batteries through Cellforce, which now shifts entirely to R&D. Porsche may still be charging ahead with electrification, but its latest move shows the road to that future is far more complicated than it once seemed.