Porsche, owned by Volkswagen AG (VWAGY), is setting up a joint venture with German battery maker Customcells to produce high-performance battery cells, Bloomberg reports. 

According to the report, these battery cells will help vehicles reduce charging times, providing better performance. The new joint venture will produce batteries with higher energy density than prototypes used in Porsche's current electric cars. The production will begin in 2024. 

The company will use silicon as anode material for higher energy density and a more compact battery. Porsche will invest a high double-digit million euro sum in the joint venture and have an 83.75% stake in the joint venture called Cellforce Group. 

The production will take place in Tübingen, south of Stuttgart, Germany, and will have a capacity of 100 kilowatt-hours. This will translate into about enough batteries for 1,000 cars a year. The company has said that it will continue to test its battery technology in motorsports. 

In February, Porsche announced that it would invest $18.1 billion in the electrification of its vehicles over the next five years. Earlier, Volkswagen has said that it will continue to offer the Porsche 911 model with internal combustion engines, albeit able to handle synthetic fuels. Volkswagen plans to build battery cell plants across Europe and expand infrastructure to charge electric vehicles globally.