Scaling Skoda Cuts Battery Costs By 30 Percent

From Andreas Grimm | Translated by AI 2 min Reading Time

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Skoda has opened a large plant for battery systems at its headquarters in Mladá Boleslav—and not just for its own use. Scaling up production reduces battery costs.

Skoda has inaugurated a new battery plant in Mlada Boleslav to meet rising demand, but also to reduce battery costs by 30 percent.(Image: Skoda)
Skoda has inaugurated a new battery plant in Mlada Boleslav to meet rising demand, but also to reduce battery costs by 30 percent.
(Image: Skoda)

The Czech Volkswagen Group subsidiary Skoda has opened an assembly plant for battery systems. According to the company, more than 1,100 cell-to-pack battery systems and up to 335,000 units per year will roll off the assembly line every day in the hall at the headquarters in Mladá Boleslav. Skoda has invested $220 million in the expansion of battery production. The new plant covers an area of 590,000 square feet.

The manufacturer entered the electric age in 2021 with the Enyaq. The e-SUV sold well right from the start—almost 80,000 units were sold in 2025. With the Elroq, the second electric e-model followed at the beginning of 2025, exceeding expectations with 95,000 units—especially in Germany. Together with the plug-in models, one in five new Skoda cars recently had a plug.

E-Car Selection Grows in 2026

The premiere of the new all-electric city SUV Epiq is scheduled for May this year. The future flagship Peaq with up to seven seats will follow in the summer. The entry-level electric model Epiq in particular is likely to significantly increase BEV registrations for the Czechs once again, although the model is built in Spain.

With the current investment, Skoda will become the largest manufacturer of battery systems for BEVs (battery electric vehicles) within the Volkswagen Group, said Thomas Schäfer, head of the Wolfsburg-based core brand VW. The new hall uses "cell-to-pack" technology, in which the cells are integrated directly into the battery pack without an intermediate step via a module.

According to Skoda, the technology is characterized by longevity, simplified production and cost efficiency. Together with the introduction of LFP cell chemistry and other measures, it enables battery costs to be reduced by 30 percent compared to previous batteries.

Cycle Time of Only 60 Seconds

The new battery systems from Mladá Boleslav will be used to supply models from several Volkswagen Group brands. According to Skoda, an automation rate of 84 percent and the use of 131 industrial robots ensure a cycle time of just 60 seconds per battery system.

Skoda has been producing high-voltage battery systems since September 2019. The subsidiary brand is considered an important driving force in the recently crisis-ridden Volkswagen Group. Last year, Skoda delivered more than one million vehicles for the first time since 2019.

Clear Division of Labor

In December, Group sister company Seat had already opened a battery system assembly plant in Martorell near Barcelona. Battery systems for up to 300,000 small electric cars such as the VW ID Polo are to be produced there. According to VW, there is a clear division of labor within the Group: The battery systems for the small cars of several Group brands, which are to go into series production there this year, are being produced in Spain, while those for medium-sized vehicles upwards are being produced in the Czech Republic.

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