Gotion Invests €1.1 Billion in Volkswagen Spain Battery Plant
Gotion will invest €1.1 billion to acquire a 49% stake in Volkswagen's Valencia battery plant to produce lithium iron phosphate batteries for Europe.
Chinese battery manufacturer Gotion will invest €1.1 billion in Volkswagen's battery plant in Valencia, Spain, acquiring a 49% stake in the facility. The plant is designated as a European production hub for lithium iron phosphate (LFP) batteries, with Volkswagen's battery subsidiary, PowerCo, retaining majority ownership.
As part of a broader agreement to establish a European battery supply chain, Volkswagen will sell a 5.3% equity stake in Gotion while maintaining a significant overall position in the company. The partnership also includes a cell factory in Surany, Slovakia, and the construction of a new plant in Kenitra, Morocco. Gotion will hold a 51% stake in both the Slovakia and Morocco sites, which will be jointly managed by Gotion and PowerCo.
Volkswagen Technology Chief Thomas Schmall stated that the agreement marks a major breakthrough for both companies and brings them closer to the forefront of electric mobility.
