Czech car manufacturer Škoda Auto, owned by the Volkswagen Group, has officially launched a new, fully automated battery module factory in Mladá Boleslav. The investment worth approximately €100 million was completed in a record short time – construction took less than a year. The plant will produce key components for Škoda's electric models and other VW Group brands, serving as a crucial element of the German conglomerate's electrification strategy and strengthening supply chain independence.
Record-short construction time
The modern battery system factory in Mladá Boleslav was built in less than twelve months, which all sources highlight as an exceptional logistical and engineering achievement.
Key investment for VW's strategy
The plant worth approximately €100 million will produce battery modules for Škoda's electric models and other Volkswagen Group brands, becoming an important competency center within the "Way to Zero" strategy.
Full production automation
The factory is fully automated and utilizes advanced robots and intelligent logistics systems, designed to ensure high efficiency, precision, and repeatability of production processes.
Strengthening supply chain independence
The investment aims to secure own production of key components, reduce dependence on external suppliers (mainly from Asia), and lower costs in the long term.
Czech car manufacturer Škoda Auto, part of the Volkswagen Group, has officially launched a new, technologically advanced battery module factory at its main plant in Mladá Boleslav, approximately 50 kilometers northeast of Prague. The investment worth around €100 million was completed in an impressively short time, with all construction and assembly work taking less than a year. According to Škoda's management, such rapid construction pace represents a record in the automotive industry and demonstrates efficient organization and team commitment. The new plant is crucial for the electrification strategy of the entire Volkswagen Group. Škoda Auto was acquired by Volkswagen in 1991 and has since been its integral, yet independent brand. The Volkswagen Group has been pursuing its comprehensive "Way to Zero" strategy for several years, aiming to achieve climate neutrality by 2050, which involves billion-euro investments in electric vehicle development and production infrastructure. The factory is fully automated and relies on advanced robots and intelligent internal transport systems. Its main task will be producing battery modules, which form the heart of every electric car. These components will primarily be used in future fully electric Škoda models but will also go to other brands in Volkswagen's portfolio. Škoda's Managing Director, Klaus Zellmer, emphasized the strategic dimension of this investment in media statements. "With this new factory, we're creating the most important competencies of the future directly at our site," said Zellmer. In his view, control over key components like batteries is essential for maintaining competitiveness, supply security, and cost management in the long term. [{"aspekt": "Battery component production", "przed": "Dependence on external suppliers (mainly from Asia)", "po": "Own automated production line in Czechia"}, {"aspekt": "Investment completion time", "przed": "Typically several years for similar projects", "po": "Record short – less than one year"}, {"aspekt": "Role in VW's value chain", "przed": "Final vehicle manufacturer", "po": "Key battery module supplier for the entire group"}] The opening of the factory in Mladá Boleslav aligns with a broader, pan-European trend toward making the local automotive industry independent from Asian component suppliers, particularly China. This responds to geopolitical risks, supply chain instability, and the European Union's ambitions to build technological sovereignty. Škoda's investment also represents practical preparation for upcoming regulations, including the EU's planned ban on sales of new combustion engine cars from 2035. Having own battery production capacity should allow for faster and more flexible responses to changing market requirements. This move also strengthens Czechia's position as an important center for advanced automotive production in Central Europe, maintaining the region's tradition and know-how in the new electric automotive era.
Mentioned People
- Klaus Zellmer — Managing Director of Škoda Auto