Porsche has officially secured Varta’s special battery, V4Drive, for its most important product. The sports car manufacturer is taking the majority stake in the energy storage production company to equip the Turbohybrid of its 911 Carrera GTS model with these batteries. The production of the battery cell is currently underway at a pilot plant in Ellwangen, Baden-Württemberg, with the entire production being purchased by Porsche. Varta will contribute its expertise and a new building in Nördlingen for the industrialization of the battery cell.
The financing for the production facilities in Nördlingen, designed for industrial production, will be taken care of by Porsche. Varta’s CEO, Michael Ostermann, expressed his excitement about the partnership with Porsche for the development and marketing of the large-format lithium-ion cells. The completion of the deal is expected in the first quarter of 2025.
Porsche’s need for these batteries stems from their unique drive concept for the iconic 911 sports car. The model will continue to operate with a combustion engine but will be supported by a hybrid drive to meet the company’s climate goals. This Turbohybrid concept has not been seen in the industry before, requiring specialized batteries that can rapidly store or release energy.
The economic situation of Varta is precarious due to investments in new factories and expanding production of battery cells for the automotive industry. Without a debt restructuring and fresh capital of 120 million euros, insolvency is likely unavoidable. Creditors, management, and majority shareholders aim to stabilize the struggling battery manufacturer through the Stabilization and Restructuring Framework for Companies (StaRUG) law.
Porsche, as a shareholder in the parent company Varta AG, is involved in this process. Major shareholder Michael Tojner and Porsche have agreed on a restructuring model within the StaRUG procedure, where existing shareholders will lose their shares, leading to the delisting of Varta’s stocks. New shareholders will include a company controlled by Tojner and Porsche AG.
After lengthy negotiations and an improved offer, the bondholders also agreed to the solution. However, small shareholders continue to oppose the stabilization plan, although they are unlikely to overturn it. The next step in the StaRUG process is for the court to evaluate the solution.
Overall, the partnership between Porsche and Varta for the special battery V4Drive represents a significant development in the automotive industry, showcasing the importance of innovative technologies and collaborations to meet sustainability goals. The restructuring efforts by Varta and the involvement of Porsche demonstrate a commitment to preserving key technologies and jobs in Germany. This strategic move by Porsche highlights its dedication to advancing its iconic 911 model while embracing hybrid technology for a more sustainable future.
