Porsche is playing a role in the financial reorganisation of battery giant Varta AG. It says its part in the rescue will secure future supplies of high-performance batteries for future electrified models and keep key technology business inside Germany.
Porsche will acquire a majority stake in V4Drive Battery GmbH via a capital increase mainly through a contribution in kind, it said. In this entity, Varta pools its business with large-format lithium-ion round cells, which are used in the performance hybrid drive of the Porsche 911 Carrera GTS.
The Varta restructuring agreement, struck after a period of negotiations, will reduce Varta's debt from €485m to €200m, Varta said.
Varta had been looking for a compromise solution involving shareholder Michael Tojner (MT InvestCo), Varta creditors and Porsche to alleviate debt and bring in new capital.
The construction of a further production facility for booster cells in Nördlingen, which was decided in spring 2024 and advanced by Porsche, will continue as planned, Porsche said. The facility is scheduled to go into operation next year; Porsche wants to provide it as a contribution in kind to V4Drive Battery GmbH. It is planned that V4Drive will also address further customers beyond of Porsche.
"Varta and Porsche are already working closely together on the topic of high-performance battery cells. With the planned majority takeover of V4Drive, we aim to drive the company forward and would make an important contribution to keeping key technologies in Germany”, said Lutz Meschke, Deputy Chairman of the Executive Board and Member of the Executive Board for Finance and IT at Porsche AG.
As Varta AG is planned to remain on board as a minority shareholder in V4Drive, Varta needs a stable financial basis, Porsche said. Against this backdrop, Porsche and further partners expressed their willingness to participate in the planned financial reorganization of Varta AG – as part of the intended restructuring process.
Porsche’s investment would amount to €30m and would directly benefit Varta AG, Porsche said.
The completion of the majority takeover of V4Drive is subject to anti-trust approvals in various countries and the ‘successful implementation of the financial restructuring of Varta AG’.
