Mar 3, 2026

Škoda has launched a €205 million battery assembly plant in the Czech Republic.

Skoda Auto has inaugurated a €205 million ($240.72 million) battery systems assembly facility at its Mladá Boleslav factory in the Czech Republic.

This 55,000m² plant positions the automaker as the largest manufacturer of battery systems for battery-electric vehicles (BEVs) within the Volkswagen Group.

The facility is capable of assembling a battery system every minute, resulting in a daily output of over 1,100 units and an annual capacity of up to 335,000.

This investment aligns with Volkswagen Group’s overall battery strategy, which integrates both in-house production and external procurement of cells and systems.

Additionally, this facility is the first in Europe within the group to produce cell-to-pack battery systems for high-volume electric vehicles.

Škoda Auto CEO Klaus Zellmer stated, “This represents a significant milestone for Škoda Auto and our dedication to decarbonizing the entire value chain. Emission reductions extend beyond the vehicle itself – they encompass sourcing, production, and energy utilization.

“With the launch of our new battery system assembly line, we are localizing battery production on a large scale, strengthening a more resilient and competitive European value chain, and enhancing the accessibility of electric mobility.”

Škoda reports that by fully internalizing the cell-to-pack process, standardizing cell formats, and utilizing lithium-iron-phosphate (LFP) chemistry, it has achieved a 30% reduction in battery production costs compared to current MEB batteries.

The battery systems produced will serve Škoda models and vehicles from other Volkswagen Group brands across various segments.

This expansion is expected to facilitate the production of up to 200,000 electric vehicles annually at the primary plant.

The new assembly hall features 131 robots and an automation level of 84%, covering processes from cell handling and preparation to stacking, precision welding, and final assembly.

Škoda has retrained or hired 600 employees for battery production roles, building on skills developed since it began assembling battery systems in 2019 for its electrified vehicles and those of other Volkswagen Group brands.

The project was executed in collaboration with the Volkswagen Group Technology Centre of Excellence Battery, which oversees battery system development and industrialization throughout the group, with a focus on localizing the battery value chain in Europe.

The automaker plans to double its all-electric lineup by 2026 with the launch of the entry-level Epiq and the higher-end Peaq.