Germany’s Volkswagen Group and China’s Gotion have announced a plan to strengthen their partnership in battery manufacturing.
The plan involves setting up three joint ventures in Spain, Slovakia and Morocco, with investments totaling around 1.57 billion euros.
The move aims to develop battery and battery material production, and to strengthen the supply chains serving Europe’s electric vehicle market.
Under the plan, the “PowerCo” plant currently under construction in Spain’s Valencia region will be transferred to a joint venture.
Volkswagen’s battery arm, PowerCo, will retain a 51 percent stake, while Gotion will invest around 1.1 billion euros to acquire the remaining 49 percent stake.
The plant is expected to become a European hub for producing lithium iron phosphate battery cells.
In Slovakia, Gotion’s plant in Šurany will be converted into a joint venture for producing battery cells.
In Kenitra, Morocco, the two companies plan to set up a facility to produce materials used in battery electrodes.
PowerCo will inject around 470 million euros into the two sites through 2030, in exchange for a 49 percent stake in each.
The two companies will jointly manage all three projects, with Gotion retaining the majority stake in the Slovakia and Morocco ventures.
Implementation of the agreement remains subject to the necessary regulatory approvals.
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