VW and Gotion Invest 1.6 Billion in Battery Joint Ventures

Battery Pact Volkswagen Is Partnering with Gotion on Battery Technology

2026-09-30 Source: dpa 1 min Reading Time

According to dpa, Volkswagen and the Chinese battery cell manufacturer Gotion are now investing billions as part of a closer partnership ...

For those who don't know: Volkswagen has a subsidiary called Powerco that manufactures batteries for electric cars. The Chinese battery expert Gotion has been supporting this effort for some time. Now the two companies plan to significantly expand their collaboration in Europe for mutual benefit ...(Image: Volkswagen) — For those who don't know: Volkswagen has a subsidiary called Powerco that manufactures batteries for electric cars. The Chinese battery expert Gotion has been supporting this effort for some time. Now the two companies plan to significantly expand their collaboration in Europe for mutual benefit ...
(Image: Volkswagen)

According to reports, Volkswagen and Gotion plan to invest billions to establish three joint ventures in Spain, Slovakia, and Morocco. At least, that is what Volkswagen, its battery division Powerco, and Gotion have stated. The relevant agreements were reportedly signed recently. However, the plans are still subject to regulatory approvals. As part of this, the Powerco battery cell factory currently under construction in Valencia, Spain, is to be incorporated into a joint venture. The Gotion factory in Surany (Slovakia) is also to be transferred to a joint venture. In Morocco, the partners are planning a new facility to produce materials needed for the manufacture of battery cells.

The Whole Thing Will Cost Nearly 1.6 Billion Euros ($1.824 billion)

As previously mentioned, this will come at a significant cost: VW’s battery subsidiary is expected to invest a total of around 470 million euros ($535.8 million) in its sites in Slovakia and Morocco by 2030 in order to acquire a 49 percent stake in each of the local companies. Gotion will contribute approximately 1.1 billion euros for a 49 percent stake in the Valencia facility. All three companies are to be managed jointly in the future. The benefits: Volkswagen can gain faster access to specific battery technologies, and Gotion facilitates access to the European market. The Chinese have also already supported the VW Group in setting up the Powerco production facility in Salzgitter.

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