Volkswagen and Gotion announce €3.22 billion battery production alliance

Volkswagen and Chinese battery manufacturer Gotion High-Tech have announced a multi-billion euro strategic alliance to expand battery and cathode material production across Europe and North Africa. The partnership involves a total estimated investment of approximately €3.22 billion through three joint ventures.

In Spain, Gotion will acquire a 49% stake in the PowerCo gigafactory in Sagunt for approximately €1.1 billion. This facility will focus on lithium iron phosphate (LFP) battery cells, with an expected annual production capacity of 29.1 GWh. PowerCo will maintain a 51% majority stake to ensure strategic and operational control.

In Slovakia, the companies will establish a joint venture in Šurany with an investment of roughly €480 million. In this location, Gotion will hold a 51% majority stake to produce 8.4 GWh of lithium-ion batteries annually.

A third project will be located in Kenitra, Morocco, focusing on the production of LFP cathode materials with an estimated €480 million investment. In the Moroccan venture, Gotion will hold a 51% stake. This collaborative effort aims to strengthen Volkswagen’s regional supply chain and meet the rising demand for electric vehicle components.