Porsche acquires stake in Varta

Back in July, it was announced that Porsche was considering acquiring a stake in Varta in order to secure the supply chain for its own 911 Carrera GTS model. Varta's major shareholder Michael Tojner, Porsche and a large number of creditors have now agreed on a compromise: The aim is to reduce Varta's debt and provide it with new capital. The banks are waiving 285 million euros, which will initially reduce the company's liabilities to 200 million euros, according to the company. The shareholders involved will receive nothing. Tojner and Porsche are jointly providing Varta with 60 million euros, while a further 60 million euros will be contributed by creditors in the form of secured loans. Varta is also in talks with other investors, so that additional capital could soon come from a third investor.

The concept is as follows: Porsche invests in the main Varta company and also acquires a majority stake in V4Drive Battery GmbH, which manufactures large-format lithium-ion round cells. In addition, a new plant is to be built in Nördlingen, Bavaria, which will be made available to Varta.


Many years of cooperation

Porsche has been a major customer of Varta for many years. The first V4Drive cell from Varta, which was presented in 2021 and is suitable for electric cars, was planned as the basis for a battery that would act as a “booster” in premium and sports vehicles. It was also to be used as a storage unit for recuperation energy in hybrid vehicles, including the Porsche 911 model. This meant that the car manufacturer was already very interested at the time.

The future even closer cooperation between Varta and Porsche on high-performance battery cells through the planned majority takeover of V4Drive is now intended to further develop the company and at the same time make a contribution to the industrial landscape in Germany.


Significance for the German battery industry

The economic agreement reached by all parties involved is now a decisive step towards a sustainable concept at Varta and also secures liquidity in the long term. The company can contribute to making Europe's battery cell research and production less dependent on Asian suppliers. This step is also significant for securing key technologies in Germany.

Image: Varta AG

Sources: electrive.net, Sebastian Schaal, 19.08.2024

varta-ag.com, 17.08.2024