Škoda starts large-scale battery production at Mladá Boleslav plant

New factory strengthens group's e-mobility strategy

The car manufacturer Škoda is further expanding its role within the Volkswagen Group's electrification strategy. A new production plant for battery systems has been put into operation at the main plant in Mladá Boleslav, Czech Republic. With an investment of around 205 million euros, the company is significantly expanding its production capacities and will play a central role in supplying electric vehicles within the group in the future.

The plant is not only intended to secure the production of battery systems for all-electric vehicles, but also to strengthen European value creation in the field of battery technology. According to the company, the site will thus become the largest manufacturer of BEV battery systems within the Volkswagen Group. This step is considered an important part of the long-term strategy to produce more key components of electromobility in Europe.

High production capacity thanks to modern manufacturing facility

The new assembly hall was built in a relatively short time. In less than twelve months, a production building with an area of around 55,000 square meters was constructed. In the future, battery systems for several electric vehicles of the so-called Brand Group Core of the Volkswagen Group will be manufactured there, which includes brands such as Volkswagen and Seat in addition to Škoda.

The production line is designed for a particularly high cycle rate. According to the manufacturer, a complete battery system can be assembled about every 60 seconds. This results in a theoretical daily output of more than 1,100 units. Calculated over the entire year, this corresponds to a possible production of up to 335,000 battery systems.

With this capacity, the plant will become an important building block of European battery production within the group. At the same time, stronger regional production reduces dependence on international supply chains, which have come under increasing pressure in recent years.

New battery technology aims to reduce costs and complexity

The introduction of the so-called Cell-to-Pack technology plays a special role here. According to the Volkswagen Group, the plant in Mladá Boleslav is the first European site where battery systems of this type are produced.

With this approach, the individual battery cells are integrated directly into the battery housing without first being grouped into separate modules. This simplified design makes production processes more efficient and saves individual components.

In addition, Škoda relies on lithium iron phosphate (LFP) cells for the new battery systems. This battery technology is considered to be more cost-effective and stable than many nickel-based alternatives. At the same time, it allows for a long service life and is particularly suitable for vehicles in the volume or entry-level segment.

According to the manufacturer, the combination of standardized cells and the new design could reduce production costs by about 30 percent compared to previous MEB batteries. Such savings are considered crucial to be able to offer electric vehicles at competitive prices in the long term.

Expansion of electric vehicle range planned

In parallel with the expansion of battery production, Škoda is also pushing ahead with the development of new electric vehicles. The manufacturer already reported a significant increase in deliveries of all-electric models for 2025. Compared to the previous year, the number of BEVs delivered has more than doubled, according to company figures.

To continue this growth, the company plans additional models for the coming years. New vehicles are expected to expand the existing portfolio as early as 2026.

An important component is the compact Škoda Epiq, which is primarily intended to be positioned in the low-cost segment. The model is aimed at buyers looking for an affordable electric car for everyday use.

In addition, Škoda is working on a larger electric vehicle called Škoda Peaq, which is to be positioned in a higher vehicle class. With these two models, the manufacturer wants to reach new customer groups and strengthen its presence in the growing European market for electric cars.

Significance for the Volkswagen Group

The new battery production underlines Škoda's growing role within the Volkswagen Group. While many vehicle components have so far come from external suppliers, the group is increasingly investing in its own production capacities for key electric mobility technologies.

The production of battery systems is considered strategically particularly important. It not only determines cost structures, but also range, charging performance and long-term competitiveness of electric vehicles.

By expanding the Mladá Boleslav site, the Group is therefore strengthening its European production base and at the same time reducing possible risks from global supply chains.

Electromobility remains a central component of the corporate strategy

The investment shows that the Volkswagen Group continues to focus strongly on electromobility despite fluctuating demand. New battery technologies, larger production capacities and additional vehicle models are to contribute to driving forward the transformation of the brand in the long term.

For Škoda, the new plant means not only an expansion of production capacities, but also a strategic position within the Group's electrical future.

Further reading: Why e-cars are suddenly becoming significantly cheaper in Germany