Volkswagen and Gotion battery manufacturing partnership

Gotion Power Morocco is preparing to launch production at its new gigafactory in Kenitra in October 2026. This facility is intended to move Morocco into more technically demanding segments of the electric vehicle value chain, particularly as the company prepares for the European Union’s battery-passport requirements taking effect in February 2027.

Following these developments, Volkswagen and Gotion announced a strategic partnership valued at approximately €3.22 billion to strengthen the electric vehicle battery supply chain. This collaboration includes three major projects in Spain, Slovakia, and Morocco.

The Moroccan portion of the investment involves €480 million to establish a factory for processing iron phosphate and lithium cathode materials, with a projected annual capacity of 100,000 tons for export. In this specific venture, Gotion will hold a 51% stake.

The broader partnership includes a €2.26 billion project in Spain to produce lithium batteries, where 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 capacity of 29.1 GWh, while PowerCo maintains a 51% majority stake. Additionally, a €480 million project in Šurany, Slovakia, will see Gotion holding a 51% majority stake to produce 8.4 GWh of lithium-ion batteries annually.