Key facts
- Volkswagen and Gotion High-tech will invest €3.22 billion ($3.67 billion) in three joint ventures.
- The ventures will establish production in Spain, Slovakia, and Morocco.
- Valencia, Spain, will host an LFP battery hub with 29.1 GWh annual capacity.
- Šurany, Slovakia, will produce 8.4 GWh of annual battery capacity.
- Kenitra, Morocco, will produce 100,000 metric tons of cathode materials annually.
- Volkswagen will sell a 5.3% stake in Gotion High-tech.
Volkswagen Group and its Chinese partner Gotion High-tech are expanding their collaboration to strengthen Europe's battery supply chain. The companies announced plans to jointly invest approximately €3.22 billion ($3.67 billion) in three new joint ventures located in Spain, Slovakia, and Morocco. This move is part of Volkswagen's broader strategy to localize battery production and secure its supply chain for its European market.
Volkswagen will also sell a 5.3% equity stake in Gotion High-tech, though it will continue to hold a significant ownership interest in the Chinese company. Gotion's board approved the investment proposal on September 28, but the formal investment agreement is yet to be signed, and the deal requires shareholder and government approvals.
The largest of the three projects is slated for Valencia, Spain, with an investment of about €2.26 billion to establish an annual lithium-ion battery production capacity of 29.1 GWh. This facility is intended to become a European production hub for LFP batteries. Volkswagen's PowerCo will retain a 51% stake in the Spanish entity, while Gotion will acquire 49% through a capital increase.
A second project in Šurany, Slovakia, will involve an investment of approximately €480 million to produce 8.4 GWh of annual lithium-ion battery capacity, with Gotion holding a 51% stake and PowerCo 49%. The third venture, located in Kenitra, Morocco, will focus on producing lithium iron phosphate cathode materials with an annual capacity of 100,000 metric tons, prioritizing supplies to the European battery plants. Gotion will also control this Moroccan joint venture with a 51% stake.
Cells produced in Spain and Slovakia will prioritize Volkswagen's demand in Europe, though specific purchase volumes are subject to future agreements. Volkswagen (China) Investment Co. held a 24.28% stake in Gotion as of September 20, making it the battery maker's largest shareholder. Gotion's global EV battery installations totaled 34.0 GWh in the first seven months of 2026, ranking it fifth globally.