- Gotion and Volkswagen plan roughly €3.22B across three joint ventures in Spain, Slovakia and Morocco to localize battery and cathode supply for the European market amidst intense cost and sourcing pressures.
- Valencia gets the biggest build: about €2.26B for a 29.1 GWh lithium‑ion plant, Šurany about €480M for 8.4 GWh, and Kenitra about €480M for 100,000‑ton LFP cathode capacity.
- Targets European OEM battery supply and rivals like CATL and SK On implicitly; execution risks include staged funding, cross‑border scaling, integration timing, and supply‑chain localization hurdles.
Gotion High-Tech and Volkswagen Group plan to invest approximately €3.22B ($3.67B) in Europe and North Africa through three joint ventures focused on power battery and cathode material production. The partnership will expand their localized supply chain for the European market, Gotion High-Tech announced on September 28.
The two companies plan to establish joint ventures in Valencia, Spain; Šurany, Slovakia; and Kenitra, Morocco. Gotion High-Tech expects to contribute approximately €1.60B, while Volkswagen’s battery subsidiary PowerCo will invest around €1.62B. The funds will be deployed in stages.
The largest project will be in Valencia, where the partners plan to invest approximately €2.26B in a lithium-ion battery plant with an annual capacity of 29.1 GWh. Gotion High-Tech plans to acquire a 49% stake in the existing PowerCo Spain entity through a capital increase, leaving PowerCo with the remaining 51%.
In Šurany, the partners plan to invest approximately €480M in a battery plant with an annual capacity of 8.4 GWh. Gotion High-Tech will hold a 51% stake in the joint venture, with PowerCo owning the remaining 49%.
The partnership also covers an investment of approximately €480M in Kenitra to establish a lithium iron phosphate (LFP) cathode material plant with an annual capacity of 100K metric tons. The facility will prioritize supplies to the two battery joint ventures. Gotion High-Tech will hold 51% of the venture, while PowerCo will own 49%.
The deal further expands the companies’ existing equity and business ties. As of September 20, Volkswagen (China) Investment Co. held a 24.28% stake in Gotion High-Tech, making it the company’s largest shareholder.
Under the partnership, Gotion High-Tech will participate in developing Volkswagen’s key battery production facilities in Europe, while Volkswagen will take stakes in Gotion High-Tech’s battery and materials projects across Europe and Africa.
The two companies expect the arrangement to establish a localized battery supply network serving the European market.
Gotion High-Tech has continued to expand its power battery business this year. Global EV battery installations reached 34 GWh from January to July 2026, up 44.2% year-on-year, lifting its global market share to 4.7% and placing it fifth worldwide, data from SNE Research show.
Beyond power batteries, Gotion High-Tech is also expanding its overseas energy storage business.
In June, construction began on the Lower Wonga integrated solar-plus-storage project in Queensland, Australia, for which Gotion High-Tech is the contractor.
The project is backed by energy developer Lightsource bp and includes a 380 MWdc solar farm and a 281 MW/843 MWh energy storage system. It is expected to connect to the grid by the end of 2028.
Gotion High-Tech will provide energy storage system design, equipment supply, system integration and grid-connection commissioning services. The project will use a DC-coupled configuration to improve solar energy utilization and optimize system operations. It marks a further expansion of the company’s presence in Australia’s utility-scale solar-plus-storage market.
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