Gotion High-tech and Volkswagen Group have announced plans to invest approximately €3.22 billion, or $3.67 billion, into battery and materials production across Europe and North Africa. The initiative involves establishing three joint ventures to secure a localized supply chain for Volkswagen's European operations.
The largest project is located in Valencia, Spain, with a planned investment of €2.26 billion to achieve an annual production capacity of 29.1 GWh of lithium-ion batteries. Gotion will acquire a 49 percent stake in PowerCo Spain, while Volkswagen's PowerCo retains a 51 percent controlling interest.
In Šurany, Slovakia, the companies plan to invest €480 million to build a facility with an annual capacity of 8.4 GWh. Gotion will hold a 51 percent stake in this venture, with PowerCo holding 49 percent. Both European projects will prioritize supplying battery cells to Volkswagen.
A third project in Kenitra, Morocco, involves a €480 million investment to produce 100,000 metric tons of lithium iron phosphate cathode materials annually. Gotion will hold a 51 percent stake in this venture, with PowerCo holding 49 percent, to supply the European battery plants.
The construction of all three projects is expected to take up to five years, excluding land and factory buildings. The proposal received board approval on September 28, 2026, but remains subject to shareholder approval and government clearances in China and abroad.
