Porsche establishes three way partnership with German battery producer

© Reuters. FILE PHOTO: A Porsche Taycan Electric Vehicle (EV) is shown during a media day for the Shanghai Auto Show in Shanghai, China, April 20, 2021. REUTERS / Aly Song

FRANKFURT (Reuters) – Volkswagen's luxury sports car division, Porsche AG, is founding a joint venture with Customcells to manufacture high-performance batteries that are intended to significantly reduce charging times, the company announced on Sunday.

The partnership with Customcells, a company specializing in lithium-ion cells in southern Germany, is to produce car batteries with a higher energy density than prototypes of current Porsche electric cars, according to a company statement.

European automakers are pushing to reduce their reliance on Asia for batteries while launching all-electric models to meet stricter emissions targets in the European Union.

In addition to shortening charging time, improving energy density means reducing the amount of raw materials needed in batteries to achieve the same range. It will also lower battery production costs and make electric cars more affordable.

Porsche will invest a high double-digit million euro amount in the joint venture, in which it will hold 80%.

The production facility should have a capacity of 100 kilowatt hours, which is roughly enough batteries for 1,000 cars a year.

Porsche boss Oliver Blume said in April that the company wanted to accelerate its e-mobility drive with plans for a German plant in Tübingen to manufacture battery cells. At the time, he didn't say whether Porsche would look for a joint venture partner.

Customcells is based in Tübingen.

The Porsche parent company Volkswagen has announced that it will build half a dozen battery cell plants across Europe and expand the infrastructure for charging electric vehicles worldwide.

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