Porsche is ramping up its electric vehicle supply chain by acquiring battery manufacturer V4Drive, German battery maker Varta’s high-performance cylindrical lithium-ion battery cell division. This strategic move aims to address safety concerns following the Taycan fire incident and reduce dependence on external suppliers.
Following the acquisition, Porsche plans to rebrand it as V4Smart and expand battery production for electric vehicles and motorsports. This follows its 2023 full acquisition of Cellforce, a former joint venture with Customcells, as part of a broader strategy to bring battery production in-house.
Porsche also planned to build a 20 GWh annual capacity battery factory in Germany but has temporarily halted the project due to a slowdown in EV market growth and increased competition.
Porsche’s latest battery manufacturer acquisition underscores its commitment to battery independence, a move closely tied to recent battery-related incidents. 2023 Porsche recalled over 27,000 Taycans, its flagship high-performance EV, due to battery defects. The National Highway Traffic Safety Administration (NHTSA) found that short circuits in LG Energy Solution battery cells used in the Taycan increased fire risks.
Additionally, Porsche’s EV batteries were implicated in the fire that sank the car carrier Felicity Ace in the Atlantic in 2022. Japanese shipping company Mitsui O.S.K. Lines has sued Porsche for approximately €30 million (about $31,511,400), alleging that battery defects caused the ship fire.
By securing battery production capabilities, Porsche aims to enhance safety, cut costs, and differentiate its technology, boosting overall competitiveness. While Porsche has adjusted its goal of transitioning over 80% of its vehicles to electric by 2030, it remains committed to developing high-performance EVs.
