Škoda Auto has opened a €205m ($240.72m) battery systems assembly hall at its Mladá Boleslav plant in the Czech Republic.
The 55,000m² facility makes the carmaker the Volkswagen Group’s “largest” producer of battery systems for battery-electric vehicles (BEVs).
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It can assemble one battery system every 60 seconds, according to the group.
This equates to a daily capacity exceeding 1,100 units and an annual output of up to 335,000.
The investment supports Volkswagen Group’s broader battery strategy, which combines internal production with external sourcing of cells and systems.
The facility is also the first in Europe within the group to manufacture cell-to-pack battery systems for high-volume electric vehicles.
Škoda Auto CEO Klaus Zellmer said: “This marks a major milestone for Škoda Auto and our commitment to decarbonising the entire value chain. Reducing emissions goes far beyond the vehicle itself – it includes sourcing, production and energy use.
“With the opening of our new battery system assembly line, we are localising battery production at scale, strengthening a more resilient and competitive European value chain, and making electric mobility more accessible.”
According to Škoda, bringing the cell-to-pack process fully in-house, standardising cell formats and using lithium-iron-phosphate (LFP) chemistry has cut battery product costs by 30% compared with current MEB batteries.
The battery systems will supply Škoda models as well as vehicles from other Volkswagen Group brands across multiple segments.
The expansion is expected to support production of up to 200,000 electric vehicles per year at the main plant.
The new hall incorporates 131 robots and an automation level of 84%, covering stages from cell handling and preparation through stacking, precision welding and final assembly.
Škoda has retrained or recruited 600 employees for battery production roles, building on capabilities developed since it began assembling battery systems in 2019 for its own electrified vehicles and those of other Volkswagen Group marques.
The project was carried out in cooperation with the Volkswagen Group Technology Centre of Excellence Battery, which oversees battery system development and industrialisation across the group and aims to localise the battery value chain in Europe.
The carmaker intends to double its all-electric portfolio in 2026 with the introduction of the entry-level Epiq and the upper-segment Peaq.
