Škoda is investing €205 million in the expansion of battery production at its headquarters in the Czech Republic and becoming the largest producer of BEV battery systems in the Volkswagen Group. This initiative, which is part of the Volkswagen Group’s overall battery strategy, balances in-house and third-party battery cell and system supply to achieve maximum flexibility and continuous access to innovations, technologies and supply chains.
In addition, Škoda’s main plant is now the first Volkswagen Group site in Europe to produce cell-to-pack battery systems for use in 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.
The opening ceremony in Mladá Boleslav, which was attended by Czech Prime Minister Andrej Babiš, Volkswagen Brand CEO Thomas Schäfer and members of the Škoda Auto Board, strengthens Škoda’s role as a component manufacturer within the Volkswagen Group and positions the Czech Republic as a leading force in electromobility in Europe.
Thomas Schäfer says: “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.”
Klaus Zellmer, CEO of Škoda Auto, says: “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.”
Andreas Dick, Škoda Auto Board Member for Production and Logistics, adds: “Having produced approximately 1.4 million battery systems in Mladá Boleslav since 2019, the launch of cell-to-pack battery system production in Mladá Boleslav is the next step in bringing an important part of the production process in-house. Around 84% automation, 131 industrial robots and a cycle time of 60 seconds per battery system ensure a high daily output of consistently high quality.
“We help secure the supply of state-of-the-art battery systems ‘made in Europe’ for volume models across the Brand Group Core. This is strong recognition of our team’s effort and expertise, and a long-term commitment to the Czech Republic as a European hub for automotive manufacturing.”
Mladá Boleslav becomes the first Volkswagen Group site in Europe to produce cell-to-pack battery systems
With this expansion, the Czech car manufacturer becomes the largest producer of BEV battery systems in the Volkswagen Group and a major driver of electromobility in Europe. The cell-to-pack battery produced in the new battery production hall is designed for use in high-volume BEV models and stands out for its durability, simplified manufacturing and cost efficiency.
By bringing the cell-to-pack production process in-house, using standardised cells and adopting LFP (Lithium Iron Phosphate) chemistry, among other measures, Škoda has achieved a 30% reduction in battery product costs compared with current MEB batteries.
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. The expansion further underlines Škoda’s vital role as a reliable component manufacturer within the Brand Group Core and will, in future, enable the company to produce up to 200,000 electric vehicles annually at its main plant.
Clear commitment to the Czech Republic as an automotive manufacturing location
Škoda Auto is investing €205 million in the new 55,000 m2 facility, which was built in less than one year. The production hall features an automation rate of 84% and 131 robots and serves as a training centre. It introduces innovative manufacturing techniques covering the full process, from cell handling and preparation to stacking, precision welding and final assembly.
Škoda Auto began producing battery systems for its electrified vehicles, and for models from other Volkswagen Group brands, in 2019. Having built substantial operational expertise in battery manufacturing, for this latest expansion the company has retrained or hired 600 people. This underlines Škoda’s commitment to shaping the transformation to e-mobility and safeguards the Czech Republic’s position as a European automotive manufacturing hub in the long term.
Doubling the BEV line-up, affordable entry-level mobility and greater freedom of choice
In 2025, Škoda more than doubled its BEV deliveries and became the fourth best-selling BEV brand in Europe. This progress was driven mainly by the Elroq, which ranked as the second best-selling BEV model in the region. In 2026, the company will accelerate electrification further by doubling its all-electric portfolio: the Epiq will bring affordable electromobility to the entry-level segment, while the Peaq will complete the upper end of the electric range, giving customers even more freedom of choice across segments.
Ambitious targets set for BEV expansion in Ireland
Having recorded an impressive three-fold increase in BEV sales in 2025, Skoda Ireland plans to ramp up its electrification plans further during 2026. The addition of the new Elroq and face lifted Enyaq in the second half of 2025 proved a massive boon. Meanwhile, this momentum is expected to continue in 2026 with the addition of the all-new Epiq, the second member of Volkswagen Group’s Urban EV family, and the seven-seat Peaq SUV towards the end of the year.
John Donegan, Skoda Ireland Brand Director, says: “There is no doubt electrification is the future. I am delighted to see Skoda Auto take a lead in European battery production with the opening of this state-of-the-art facility in Mladá Boleslav. By continuing to push forward and lead the way, we can accelerate Ireland’s transition to electric driving with products that combine innovation, reliability, and real everyday value.“
