Volkswagen is collaborating with Chinese battery manufacturer Gotion to establish a European electric vehicle battery supply chain.
On the night of September 28, Gotion announced via the Shanghai Stock Exchange that it will invest a total of €3.222 billion (approximately 5 trillion won) to set up three joint ventures with Volkswagen Group's battery subsidiary, PowerCo, in Spain, Slovakia, and Morocco. Gotion will contribute €1.598 billion, while PowerCo will invest €1.624 billion.
In Valencia, Spain, a factory will be built with an annual capacity of 29.1 GWh for LFP batteries. PowerCo will hold a 51% stake, and Gotion will own 49%, with plans to develop it into Volkswagen's European LFP (lithium iron phosphate) battery production hub. In Slovakia, an LFP battery plant with an annual capacity of 8.4 GWh will be established, where Gotion will hold a 51% stake. In Kenitra, Morocco, a facility for producing 100,000 tons of LFP cathode materials will be constructed, with Gotion also holding a 51% stake. The combined production capacity of the two European battery plants will reach 37.5 GWh, sufficient to manufacture approximately 600,000 electric vehicles annually.
Gotion is a private battery company headquartered in Hefei, Anhui Province, China. According to the China Automotive Power Battery Industry Alliance, Gotion ranked third in China's electric vehicle battery market share with 6.2% in the first half of 2026, and fifth globally with 4.6% according to SNE Research. Volkswagen became the largest shareholder of Gotion in 2020 by acquiring a 26% stake for about €1.1 billion. Although its stake has since decreased to 24.28%, Volkswagen remains the largest shareholder and acts as a strategic investor without participating in management.
With no existing LFP battery production capacity in Europe, Volkswagen aims to secure its electric vehicle battery supply chain by leveraging Gotion's technology and production experience. The company anticipates that LFP battery market share in Europe will expand to between 40% and 60% by 2030.
This partnership is also significant for Gotion, as it allows the company to directly access the European market through local production amid increasing restrictions on Chinese electric vehicles in Europe.
* This article has been translated by AI.
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