Škoda opens new battery systems assembly hall following 205 million euros investment

Škoda is investing 205 million euros in the expansion of battery production in Mladá Boleslav, becoming the largest producer of BEV battery systems in the Volkswagen Group. This opening is part of the Volkswagen Group’s overall battery strategy, which balances in-house and third-party battery cell and system supply.

At the same time, Škoda’s main plant is now the first Volkswagen Group site in Europe to produce cell-to-pack battery systems for use in high-volume electric vehicles. A daily output of more than 1,100 cell-to-pack battery systems and up to 335,000 units a year will accelerate the rollout of new technologies in close collaboration with the Volkswagen Group Technology Center of Excellence Battery.

“With this investment, Škoda becomes the largest producer of BEV battery systems within the Volkswagen Group and a central pillar of our electrification strategy. The plant in Mladá Boleslav operates at true industrial scale and reinforces the European battery value chain. Škoda’s expertise, efficiency and unique spirit make it a key driver of our Brand Group Core Transformation.” – Thomas Schäfer, Volkswagen Brand CEO

“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. As part of the Brand Group Core, we are proud to contribute our industrial strength and expertise to a powerful alliance of volume brands shaping the future of sustainable mobility. We are grateful to the Volkswagen Group for the trust placed in us to deliver up to 335,000 battery systems annually for electrified drivetrains across the Group. At the same time, we are doubling our Škoda BEV portfolio and transitioning our sites to greener energy, including converting our central power plant from coal to biomass, which will reduce emissions by around 274,000 tonnes of CO₂ by 2027. By building expertise in high-volume battery production and accelerating electrification, we are taking responsibility contributing to a sustainable future for Škoda Auto, the Czech Republic and Europe as a whole.” – Klaus Zellmer, CEO of Škoda Auto

Škoda will produce more than 1,100 cell-to-pack battery systems per day and up to 335,000 units per year for Škoda models and vehicles from other Group brands across several segments. The Center of Excellence Battery, which is responsible for developing and industrialising battery systems within Volkswagen Group Technology, works closely with the Czech car manufacturer and other brands to localise the battery value chain in Europe, strengthening the Volkswagen Group’s control over a key component.