Gotion High-tech and Volkswagen Group announced on September 28, 2026, plans to jointly invest about €3.22 billion ($3.67 billion) in battery and materials production projects in Europe and North Africa. Through subsidiaries, the companies intend to establish three joint ventures in Spain, Slovakia and Morocco to support Volkswagen’s European battery supply chain.
Gotion plans to contribute about €1.6 billion, while Volkswagen battery subsidiary PowerCo plans to provide about €1.62 billion, with funding deployed in stages. The largest project, in Valencia, Spain, would receive about €2.26 billion and establish 29.1 GWh of annual lithium-ion battery production capacity. Gotion would acquire 49% of the existing PowerCo Spain through a capital increase, leaving PowerCo with 51%.
In Šurany, Slovakia, the partners plan to invest about €480 million in a facility with 8.4 GWh of annual lithium-ion battery capacity. Gotion would own 51% and PowerCo 49%. Cells from the Spanish and Slovak projects would prioritize Volkswagen’s European demand, although purchase volumes and supply assurances remain subject to definitive agreements.
The companies also plan a €480 million lithium iron phosphate cathode materials project in Kenitra, Morocco, with annual capacity of 100,000 metric tons. The venture, owned 51% by Gotion and 49% by PowerCo, would prioritize supplies to the two European cell projects.
The filing’s construction scope excludes land and factory buildings. Each project is expected to require no more than five years to build, depending on actual progress. Gotion’s board approved the proposal on September 28, but the investment agreement has not yet been signed. Shareholder approval and government clearances in China and overseas are also required. Gotion said financing, approvals and market changes could affect schedules and returns.
Volkswagen (China) Investment Co. held 24.28% of Gotion as of September 20, making it the battery manufacturer’s largest shareholder. According to SNE Research, Gotion’s global EV battery installations reached 34.0 GWh in the first seven months of 2026, up 44.2% year over year. It ranked fifth globally, with market share rising to 4.7% from 3.9%.
Gotion, Volkswagen Plan €3.22 Billion Battery Projects
Three joint ventures target 37.5 GWh of annual cell capacity plus cathode materials, localizing Volkswagen’s European battery supply.
The €3.22 billion plan equals $3.67 billion at $1 = €0.8783; scope excludes land and factory buildings, with builds capped at 5 years.
Source: CnEVPost
