Core Viewpoint - Porsche has suspended its plans for in-house high-performance battery production due to the lack of economic feasibility and challenges in achieving economies of scale in the current market environment [4][5]. Group 1: Porsche's Battery Production Plans - Porsche's decision to halt its battery production plans is attributed to slower-than-expected growth in the electric vehicle market and changing market conditions in China and the U.S. [4] - The CEO of Porsche highlighted the significant investment and scale required for battery manufacturing, which is currently unachievable for the company [4]. - The Cellforce division, which was responsible for battery development, will reduce operations and focus on supporting the Volkswagen Group and its acquisition of V4Smart [4][5]. Group 2: V4Smart and PowerCo - V4Smart, previously known as V4Drive, is a platform for enhancing battery technology, with plans to produce high-performance cylindrical lithium-ion batteries [4][5]. - PowerCo, a subsidiary of Volkswagen established in July 2022, is focused on global battery business development and plans to build large battery factories in Germany, Spain, and Canada [5]. - PowerCo is investing in solid-state battery technology, including a $131 million investment in QuantumScape to support a pilot production line in California [5]. Group 3: Challenges in Battery Technology - The development of solid-state batteries faces more challenges compared to traditional liquid batteries, with significant technological and material bottlenecks [6]. - The rapid iteration of battery technology and the stability of supply chains are critical challenges for automakers, especially given the dominance of Chinese companies in materials and equipment [6]. - Companies like BYD, Geely, and Tesla are successfully producing their own batteries, with BYD achieving a domestic battery installation volume of 82.2 GWh from January to July this year [7]. Group 4: BYD and Geely's Battery Strategies - BYD has established 12 battery bases in China, with a total planned capacity exceeding 500 GWh, and is increasing its external supply to various automakers [7]. - Geely has integrated its battery business under the "Jiyao Tongxing" brand, aiming for a production capacity of 70 GWh by 2027, with a significant year-on-year growth in installation volume [7].

Core Viewpoint - The article discusses Porsche's decision to suspend its high-performance electric vehicle battery development plan due to economic infeasibility and challenges in scaling production [2][3]. Group 1: Porsche's Battery Development Plan - Porsche has announced the cancellation of its plan to build high-performance battery production, citing lower-than-expected growth in the electric vehicle market and changes in the US-China market environment [3]. - The CEO, Oliver Blume, highlighted the lack of economies of scale and production limitations, stating that battery manufacturing requires significant investment and high levels of scalability, which are currently unachievable for Porsche [3]. - The Cellforce division, which had completed some cell development and initiated trial production, will now reduce operations and redirect its research outcomes to support the Volkswagen Group and V4Smart, a company acquired by Porsche [4]. Group 2: Impact on Workforce and Future Plans - As a result of the suspension, Cellforce may lay off approximately 200 employees from its current workforce of around 300, with remaining staff potentially transferred to Volkswagen's battery subsidiary, PowerCo [4]. - Porsche had previously announced plans to develop a new solid-state battery, aiming to increase the electric vehicle range to 1,300 kilometers, with further optimizations expected to enhance range by 30%-50% and charging power to 500 kW [5]. - After two years of effort, Porsche has recognized the difficulties in battery development and has opted to leave such specialized tasks to established battery giants like CATL [5].