Chinese battery manufacturer Gotion is engaged in advanced negotiations with Volkswagen over a potential stake in the PowerCo battery cell plant in Sagunto, Spain, according to the Spanish trade publication La Tribuna de Automoción. The report says the companies are considering a structure under which Gotion would acquire a majority stake in a joint venture for the facility, while PowerCo would retain an ownership interest.
PowerCo declined to comment on the report to Reuters, stating only that it regularly evaluates strategic opportunities and partnerships. A company spokesperson also said there are no plans to relinquish control of the site. Gotion did not immediately comment.
Industry Report Points to Potential Majority Stake
According to La Tribuna de Automoción, the negotiations have been underway for several months. The publication cited industry sources who said Gotion CEO Li Zhen has visited the site and held discussions with PowerCo representatives. The report states that both the technical and commercial aspects of a potential investment have been evaluated. It also says the negotiations are limited to the Sagunto facility and do not involve PowerCo’s battery business as a whole.
Battery Plant Is Part of Volkswagen’s European Strategy
The Sagunto plant is one of PowerCo’s key projects. Volkswagen announced the start of construction of the battery cell factory in 2023. According to the company, the facility is initially designed for an annual production capacity of 40 gigawatt-hours, with the potential to expand to 60 gigawatt-hours. The battery cells produced at the site are intended in part for Volkswagen’s vehicle plants in Spain. Based on the current timeline, production is expected to begin by the end of 2026. The installation and commissioning of manufacturing equipment, as well as the construction of clean rooms and dry rooms, are currently underway.
Sources:
https://www.reuters.com/world/china/volkswagen-takeover-talks-with-chinese-partner-spanish-battery-plant-trade-2026-07-27/
https://www.latribunadeautomocion.es/2026/07/gotion-negociaciones-powerco-sagunto/
https://www.volkswagen-group.com/en/press-releases/gigafactory-valencia-powerco-gives-starting-signal-for-construction-of-second-cell-factory-17033
https://www.eldiario.es/comunitat-valenciana/economia/powerco-reajusta-inicio-produccion-gigafactoria-sagunto-finales-ano_1_13380485.html
