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Skoda invests €205 in new battery systems assembly hall

Skoda Auto has officially cemented its position as the heavyweight of Volkswagen Group’s electric future, pouring €205 million into a massive expansion of its battery production facility in Mladá Boleslav.

While the headline news is the sheer scale of the investment, making the Czech manufacturer the largest producer of BEV battery systems in the VW Group, the real story for the UK motor trade lies in what is rolling off that assembly line.

The plant is the first VW Group site in Europe to fully integrate and produce cell-to-pack (CTP) battery systems for high-volume EVs.

Skoda isn’t just dipping a toe in; they are operating at true industrial scale. The new 55,000-square-metre facility was built in less than a year and is designed to feed the VW Group’s growing fleet of affordable EVs.

The most significant takeaway for the independent garage is Skoda’s move away from traditional modular battery architectures.

By fully insourcing the CTP process, standardising the cells, and adopting Lithium Iron Phosphate (LFP) chemistry, Skoda has achieved a 30% reduction in battery product costs compared to current MEB batteries.

In older EV designs, individual battery cells were grouped into replaceable “modules,” which were then packed into the main battery casing.

The new CTP architecture does away with the modules entirely, packing the standard cells directly into the battery casing.

This saves weight, frees up physical space, and vastly simplifies manufacturing.

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