Porsche Closes Cellforce Battery Unit in Strategic Realignment

Porsche will shut down battery cell subsidiary Cellforce Group along with e-bike and software units, cutting more than 500 jobs as CEO Michael Leiters refocuses the automaker on its core sports car and SUV business.

Porsche AG will shut down its high-performance battery cell subsidiary Cellforce Group GmbH, eliminating roughly 50 remaining jobs at the Kirchentellinsfurt site as part of a broader restructuring affecting more than 500 employees across three units. The closure, announced on May 8, 2026, follows the company’s recently agreed sale of its stakes in Bugatti Rimac and the Rimac Group. Porsche is also winding down e-bike drive specialist Porsche eBike Performance GmbH and software developer Cetitec GmbH. Full details were published on the Porsche newsroom.

Highlights

  • Cellforce Group GmbH will close, affecting around 50 employees — down from a peak workforce of 286 before the August 2025 first round of cuts
  • Porsche eBike Performance GmbH will discontinue operations in Ottobrunn and Zagreb, affecting roughly 350 employees
  • Cetitec GmbH in Pforzheim will close after the works council process, affecting around 60 employees in Germany and 30 in Croatia
  • Combined headcount reduction across all three units totals more than 500 positions

Cellforce wind-down ends five-year battery cell push

Cellforce was founded in 2021 as a joint venture between Porsche and battery specialist Customcells, with Porsche taking full ownership in 2023. The subsidiary was central to a strategy then-CEO Oliver Blume described as treating the battery cell as “the combustion chamber of the future.” Plans at one stage called for cell output of up to 20 GWh annually, scaled up from an initial 100 MWh pilot capacity at the Kirchentellinsfurt site near Reutlingen.

That trajectory reversed in April 2025, when Porsche announced it would not pursue independent production expansion. By August 2025, roughly 200 of 286 Cellforce employees were made redundant, with the residual unit positioned as a research and development arm. Porsche reported a €295 million depreciation on Cellforce production facilities tied to that step. The May 2026 announcement removes that remaining R&D unit as well.

Porsche has framed the closure as consistent with what the company now calls a “technology-open powertrain strategy” — a posture that signals greater reliance on external cell suppliers. Michael Leiters, Chairman of the Executive Board, said: “We must refocus on our core business. This is the indispensable foundation for a successful strategic realignment. This forces us to make painful cuts — including our subsidiaries.”

eBike Performance and Cetitec also affected

Porsche eBike Performance GmbH was set up to develop and market high-performance e-bike drive systems. The company said fundamentally changed market conditions for e-bike drives no longer support the joint venture, and operations at both Ottobrunn and Zagreb will end. The closure affects roughly 350 employees.

Cetitec GmbH, based in Pforzheim, developed specialized data communication software for Porsche and the wider Volkswagen Group. Management will open works council discussions on closure, with around 60 affected employees in Germany and 30 in Croatia.

Context: Porsche’s narrowing EV portfolio

The Cellforce closure leaves Porsche reliant on partner-supplied cells for its EV programs. The company’s in-house battery activity is now centered on module assembly rather than cell production. Porsche opened its Smart Battery Shop in Slovakia in March 2026 to produce battery modules for the Cayenne Electric using pouch cells sourced from outside suppliers. The company also acquired Varta’s V4Drive unit in March 2025, now operating as V4Smart, which produces cylindrical booster cells used in the 911 Carrera GTS and 911 Turbo S.

The restructuring follows broader pressure on the German automaker, including weaker-than-expected EV demand in China, U.S. tariff exposure, and a steep drop in 2025 operating profit. Pillar coverage on PHEV versus BEV strategy across the industry will be added once The EV Report’s pillar page on the topic goes live.

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