Porsche Acquires Majority Stake in Varta’s V4Drive Battery Unit

Porsche has acquired a majority stake in Varta’s V4Drive battery subsidiary, where it will be renamed as V4Smart.

Porsche has just completed a major stake acquisition in Varta’s V4Drive electrified vehicle battery subsidiary. This move is part of the Stuttgart-based marque’s plan to secure the battery supply for its future electrified models, with the company now being rebranded into V4Smart as part of the acquisition move.

The deal was struck back on March 4, where Varta will retain a minority stake with no operational influence over the battery maker.

Starting from April 2025 onwards, the V4Smart ultra-high-performance lithium-ion cylindrical cells will be produced at the company’s new facility in Nordlingen, Germany, while the existing production site in Ellwangen will continue its operations as usual.

More importantly, this new partnership will allow Porsche to provide the entire process chain for cylindrical cells, from cell design to production, thus granting them direct access to Varta’s advanced lithium-ion battery technology. With a stable supply of high-quality battery cells already secured, this acquisition will ultimately help Porsche to manage supply chain risks and even lower the production costs for its electrified models in the near future.

The 992.2-gen Porsche 911 GTS uses Porsche's new T-Hybrid powertrain setup, which uses Varta's V4Drive battery cells.

Prior to this acquisition, Varta’s battery cells have already been powering several of Porsche’s sportscars, including the new 992.2-gen 911 GTS hybrid sportscar. The lithium-ion cylindrical cells made by Varta became a key component in Porsche’s new T-Hybrid drive system, providing an extra boost of power to its most iconic sportscar model.

Ultimately, this acquisition is part of Porsche’s own battery strategy, which it has developed alongside the plans made by parent company Volkswagen Group. Part and parcel of its strategy is to build high-performance battery cells via its own battery subsidiary Cellforce, with the company also seeking partners to support its new 10-20 gigawatt-hour factory site worth €3.3 billion (RM15.87 billion).

Porsche’s move to acquire Varta’s V4Drive also follows the recent bankruptcy of one of its battery suppliers, Northvolt, as the Swedish-based firm was previously the sole supplier of high-energy density battery cells for its EVs. This bankruptcy has also delayed the timeline of the vehicle launches, including the long-awaited, all-electric successor to the Porsche 718.