Porsche has shelved its plans to build a major battery cell factory in Brandenburg, Germany. The decision, which shocked the Germans, dealt a significant blow to Germany’s dreams of becoming a battery production hub. Here are all the details of this disappointing development…

Porsche abandoned plans to build a battery factory in Germany

Two weeks ago, Porsche gave the green light for the production of the fully electric Macan model in Leipzig. However, the German automotive giant unexpectedly halted its plans to establish its battery production facility in Brandenburg, Germany. The company’s Supervisory Board plans to suspend this project at the annual general meeting on June 7. The reason is economic difficulties in China and weak demand for electric vehicles in Germany.

Porsche had established a battery subsidiary called Cellforce about three years ago and was building a pilot plant near Reutlingen. However, the capacity of this facility may be limited to 1.3 gigawatt-hours. The potential expansion plan in Schwarzheide, Brandenburg, with over 20 gigawatt-hours, also fell through.

Porsche’s cancellation of this project is another blow for Germany. Earlier this week, Chinese battery manufacturer Svolt canceled its plans to build a battery factory in Lauchhammer. That’s not all. Rock Tech also failed to receive federal funds from Germany for the planned lithium converter in Guben.

These successive bad news have virtually shattered Germany’s dreams of becoming a battery production hub. Porsche’s decision has severely undermined Germany’s green energy transition goals and competitiveness in the electric vehicle market.

This decision is shocking but true for the Germans. Porsche has temporarily shelved its dreams of building a battery factory in Germany. We will see together how this decision will reflect on the industry in the long run. You can share your thoughts and comments in the section below.