Battery Production
How Gotion Is Securing VW's Entry into Europe

From Henrik Bork 5 min Reading Time

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VW is bringing Gotion to Europe for three battery joint ventures and, at the same time, selling shares in its partner. This way, both companies share the investment risk.

The planned VW/Powerco battery cell factory is located north of Valencia, not far from the port of Sagunt (left). On the right, a future expansion of the factory is faintly visible through the transparency.(Image: Volkswagen AG)
The planned VW/Powerco battery cell factory is located north of Valencia, not far from the port of Sagunt (left). On the right, a future expansion of the factory is faintly visible through the transparency.
(Image: Volkswagen AG)

Volkswagen plans to sell shares in its Chinese battery partner, Gotion, while at the same time strengthening its ties with the company. What sounds like a contradiction actually follows a logical line of reasoning: Gotion is expected to help VW quickly produce enough batteries in Europe for the group’s electric cars. In return, Volkswagen will assume part of Gotion’s investment risk.