Volkswagen, PowerCo, and Chinese battery maker Gotion High-tech plan to significantly expand their cooperation. The companies intend to establish three joint ventures in Spain, Slovakia, and Morocco focused on LFP battery cells and cathode materials. The projects represent a total investment of about €3.22 billion.
Their initiatives are aimed at creating a more regionalized battery supply chain for Europe. However, the plans are still subject to regulatory approvals and other closing conditions.
Valencia to Become the Key Production Site
The largest project is planned for Valencia. PowerCo’s battery factory currently under construction there is set to be transferred into a joint venture. PowerCo will hold a 51% stake, while Gotion will own 49%. The project calls for about €2.26 billion in investment and annual production capacity of 29.1 GWh.
In Šurany, Slovakia, another LFP cell plant is planned with annual capacity of 8.4 GWh. Gotion will hold 51%, while PowerCo will own the remaining 49%.
In Kenitra, Morocco, the companies also plan to build a facility for LFP cathode materials with annual capacity of 100,000 metric tons. Gotion will also remain the majority shareholder in that joint venture.
Volkswagen Also Reduces Its Stake in Gotion
Alongside the industrial partnership, Volkswagen is reducing its direct equity stake in Gotion. The company has agreed to sell 5.3 percentage points of its holding but intends to remain a strategic investor.
The move deepens the companies’ operational cooperation while Volkswagen simultaneously scales back part of its financial stake in Gotion.
Sources:
https://www.volkswagen-group.com/de/pressemitteilungen/volkswagen-group-powerco-und-gotion-vertiefen-strategische-partnerschaft-20710
https://cnevpost.com/2026/09/28/gotion-vw-plan-investment-european-battery-chain/
