SKODA is investing more than £205 million in the expansion of battery production in Mlada Boleslav, becoming the largest producer of BEV battery systems in the Volkswagen Group.

The opening is part of the Volkswagen Group's overall battery strategy, which balances in-house and third-party battery cell and system supply to achieve maximum flexibility and continuous access to innovations, technologies and supply chains.

At the same time, Skoda'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 Centre of Excellence Battery.

The opening strengthens both Skoda's role as a component manufacturer within the Brand Group Core and the position of the Czech Republic as an automotive centre.

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 fully insourcing the cell-to-pack process, using standardised cells and adopting LFP chemistry, among other measures, Skoda has achieved a 30 per cent reduction in battery product costs compared with current MEB batteries.

Skoda will produce more than 1,100 cell-to-pack battery systems per day and up to 335,000 units per year for Skoda models and vehicles from other Group brands across several segments.

Skoda's investment in the new 55,000 square metre facility, which was built in less than one year. The production hall, with a cycle time of 60 seconds, features an automation rate of 84 per cent and 131 robots.

In 2025, Skoda more than doubled its BEV deliveries and became the fourth best-selling BEV brand in its core market, 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 with the Epiq which will bring affordable electromobility to the entry-level segment, while the Peaq will complete the upper end of the electric range.