Škoda Auto has formally opened a new battery systems assembly hall at its main plant in Mladá Boleslav, marking a significant escalation in the Volkswagen Group’s European electrification push and positioning the Czech marque as the Group’s largest manufacturer of battery systems for battery electric vehicles (BEVs).
Backed by an investment of €205 million, the 55,000 square metre facility is now producing cell-to-pack battery systems at industrial scale, with a headline capacity of more than 1,100 units per day and up to 335,000 annually . According to the company, this makes the site the biggest BEV battery system production hub within the Volkswagen Group.
The opening ceremony was attended by Czech Prime Minister Andrej Babiš and Minister of Industry and Trade Karel Havlíček, alongside senior Volkswagen and Škoda executives, underlining both the national and corporate importance of the investment .
Europe’s first Volkswagen Group cell-to-pack site
Crucially, Mladá Boleslav becomes the first Volkswagen Group location in Europe to manufacture cell-to-pack battery systems . In contrast to earlier modular battery assemblies, the cell-to-pack approach integrates cells directly into the battery pack structure, eliminating intermediate modules. The result is improved volumetric efficiency, simplified production processes and, critically, lower cost.
Škoda says that by fully insourcing the cell-to-pack process, using standardised cells and adopting lithium iron phosphate (LFP) chemistry, it has achieved a 30% reduction in battery product costs compared with current MEB batteries . For high-volume electric vehicles, that scale of saving is strategically significant, particularly as European OEMs seek to close the affordability gap with Chinese competitors.
The new battery systems are intended for use in high-volume BEV models across multiple Group brands and segments , reinforcing Škoda’s growing role as a component supplier within the Volkswagen Group’s Brand Group Core structure.
Thomas Schäfer, Volkswagen Brand CEO and Chair of the Škoda Supervisory Board, described the plant as a “central pillar” of the Group’s electrification strategy, emphasising its role in strengthening the European battery value chain .
Industrial scale: 60-second cycle times and 84% automation
The scale and technical sophistication of the new hall underline its importance. Built in under a year , the facility operates with a cycle time of 60 seconds per battery system and an automation rate of around 84%, supported by 131 industrial robots .
The production line encompasses the full process chain: cell handling and preparation, stacking, precision welding and final assembly. According to Andreas Dick, Škoda Auto Board Member for Production and Logistics, the launch of cell-to-pack production represents the next step in bringing a key part of the battery value chain in-house .
Škoda has been producing battery systems in Mladá Boleslav since 2019, building up operational expertise and delivering approximately 1.4 million battery systems over that period . The latest expansion therefore builds on an existing manufacturing base rather than creating a capability from scratch.
To support the ramp-up, the company has retrained or newly hired 600 employees for battery-related roles. In the context of Europe’s automotive transition, this is as much a workforce transformation story as it is a technological one.
Strengthening the European battery value chain
For the Volkswagen Group, the investment aligns with a broader battery strategy that balances in-house production with third-party sourcing to maximise flexibility and access to innovation. By localising more of the battery system assembly in Europe, the Group reduces exposure to geopolitical risk and long supply chains.
The Mladá Boleslav plant works closely with the Volkswagen Group Technology Center of Excellence Battery, responsible for developing and industrialising battery systems. The explicit aim is to strengthen control over what is arguably the most critical and cost-intensive component in a BEV.
Klaus Zellmer, CEO of Škoda Auto, framed the expansion as part of a wider decarbonisation strategy, extending beyond tailpipe emissions to include sourcing, production and energy use. In parallel with battery localisation, the company is converting its central power plant from coal to biomass, a move expected to cut emissions by around 274,000 tonnes of CO₂ by 2027 .
In strategic terms, the investment reinforces the Czech Republic’s position as a European automotive manufacturing hub. Škoda operates three production plants domestically and employs around 40,000 people globally, with activity in nearly 100 markets. The battery plant is therefore both a national industrial asset and a core node in the Volkswagen Group’s electrification network.
Enabling higher EV output at Mladá Boleslav
Beyond component supply to other brands, the expanded battery capacity directly supports Škoda’s own electric vehicle ambitions. The company says the development will enable production of up to 200,000 electric vehicles annually at its main plant in the future .
That aligns with a rapid expansion of its BEV portfolio. In 2025, Škoda more than doubled its BEV deliveries and became the fourth best-selling BEV brand in Europe. Growth was driven largely by the Elroq, which ranked as the region’s second best-selling BEV model.
In 2026, Škoda plans to double its all-electric portfolio. The forthcoming Epiq will target the entry-level segment with a focus on affordability, while the Peaq will extend the brand’s electric offering at the upper end of the range . Together with existing models such as the Enyaq and Elroq, the line-up is intended to provide broader choice across segments.
From a cost perspective, the shift to cell-to-pack and LFP chemistry is particularly relevant for entry-level and high-volume vehicles. LFP cells typically offer lower material costs and improved cycle life, albeit with lower energy density compared with nickel-rich chemistries. For mainstream European buyers prioritising value and durability over maximum range, the trade-off may prove commercially astute.
Brand Group Core and industrial repositioning
Škoda’s elevated status within the Volkswagen Group reflects its role in the Brand Group Core, which unites the Group’s volume brands to drive efficiency and joint growth . By becoming the largest producer of BEV battery systems within the Group, Škoda transitions further from being solely a vehicle assembler to acting as a strategic component manufacturer.
The company already develops and produces MEB battery systems, engines and transmissions for other Group brands . The new facility cements that cross-brand responsibility at a time when scale, cost discipline and vertical integration are becoming decisive competitive factors in Europe’s EV market.
It also illustrates a broader industrial recalibration. As European OEMs face tightening CO₂ targets, intensifying Chinese competition and persistent margin pressure, control over battery technology and production economics is no longer optional. The ability to assemble more than 1,100 battery systems per day on a 60-second takt time brings genuine mass-production credentials.
For WhichEV readers, the key takeaway is that battery cost and supply resilience are moving from theoretical strategy documents into concrete, high-throughput production lines. The opening of Škoda’s new assembly hall is not merely a ribbon-cutting ceremony; it is a tangible sign that European manufacturers are scaling up local battery integration at speed.
With 335,000 battery systems per year now achievable at a single site , Mladá Boleslav becomes a cornerstone of the Volkswagen Group’s European BEV architecture. Whether that translates into more competitively priced electric cars on UK forecourts will depend on wider market dynamics. But from a manufacturing standpoint, the direction of travel is clear: deeper localisation, greater automation and a decisive shift towards cost-optimised, high-volume battery production in the heart of Europe.
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