Porsche AG has partnered with German lithium-ion producer Custom Cells Itzehoe GmbH to form a new joint venture company to manufacture battery cells for current and future electric sportscars.
Porsche didn't say how much it will be investing in the joint venture but sources said it was in the high double-digit million euro range. The company said it would be taking an 83.75% stake in joint venture Cellforce. Custom Cells will take the rest.
Porsche said Monday Cellforce would be tasked with the research, development, manufacturing and sales of new high-performance battery cells, which the company described as the "combustion chamber of the future."
Through the production of its own battery cells, Porsche will be less reliant on outside suppliers. Analysts said having its own dedicated battery production facility will allow Porsche to better compete with other electric vehicle companies such as Tesla.
Unlike the batteries used on consumer electric vehicles, Porsche will need better-performing battery cells for its line of sports-oriented vehicles. Batteries for sportscars will need to cope with much higher temperatures and energy requirements.
Porsche chief executive officer Oliver Blume said the batteries that Cellforce will be developing will have improved range, performance and charging times when compared with other electric vehicle battery cells.
Blume said the new cells will also allow customers of future models to charge their cars in less than 15 minutes. Current Porsche Tycan models need around 22.5 minutes to charge from 5% to 80%.
Porsche plans to use silicon as an anode material for its new compact batteries. The company said it plans to have an annual capacity of at least 100 megawatt-hours, which will be enough to make battery cells for at least 1,000 sportscars per year. Porsche plans to go into small-scale production by 2024.
The battery that will be produced by the joint venture will also be used in motor sports. Porsche development chief Michael Steiner said using the batteries in races will help them further develop and refine the technology.