Škoda has announced a major €205 million investment to expand battery production at its headquarters in Mladá Boleslav in the Czech Republic, strengthening its role within the Volkswagen Group’s electric vehicle strategy. The move positions the Czech manufacturer as the largest producer of battery electric vehicle battery systems within the group and marks an important step in supporting the growing demand for electric cars across Europe, including in Ireland. The expansion introduces a new production facility capable of manufacturing more than 1,100 battery systems per day, equating to up to 335,000 units annually. These battery systems will power electric vehicles not only from Škoda but also other Volkswagen Group brands. The plant is also the first Volkswagen Group site in Europe to produce advanced cell-to-pack battery systems for volume electric vehicles, a technology that simplifies production and improves efficiency.
The new battery production hall spans 55,000 square metres and was completed in less than a year. With an automation rate of 84 per cent and more than 130 industrial robots working on the assembly line, each battery system can be produced in just 60 seconds. The project has also led to the recruitment and retraining of around 600 employees as part of the company’s wider transition towards electrified vehicle production. Škoda says bringing battery assembly in-house will strengthen the European battery supply chain and improve efficiency across the Volkswagen Group. The company has already built considerable experience in battery manufacturing, having produced around 1.4 million battery systems at the Mladá Boleslav plant since 2019. The latest development builds on that expertise and helps secure a reliable supply of battery systems made in Europe.
The new cell-to-pack battery design also contributes to lower production costs. By using standardised battery cells and lithium iron phosphate battery chemistry, Škoda has reduced battery production costs by around 30 per cent compared with current systems. This cost reduction is expected to help make electric vehicles more affordable for customers. The expansion forms part of a broader electrification push for the brand. Škoda has seen strong growth in electric vehicle sales across Europe and plans to significantly expand its battery electric line-up in the coming years. Models such as the Elroq have already performed strongly in European markets, while new vehicles including the entry-level Epiq and the larger Peaq SUV are expected to arrive soon.
Ireland will also play a role in this expansion. Škoda Ireland recorded a threefold increase in battery electric vehicle sales in 2025 and plans to accelerate that growth further. The arrival of new models such as the Elroq and the updated Enyaq has already strengthened the brand’s electric offering locally, with additional models expected to follow in 2026. According to Škoda Ireland Brand Director John Donegan, the new battery production facility highlights the company’s commitment to electrification and will help support Ireland’s transition to electric driving by delivering innovative, reliable and more accessible electric vehicles for Irish motorists.
