Volkswagen and Gotion High-tech plan to form three joint ventures to develop battery projects in Spain, Slovakia, and Morocco. The total investment for these initiatives is €3,22 billion, which will be shared almost equally between the partners. Volkswagen’s subsidiary PowerCo will contribute approximately €1,62 billion, while Gotion will invest around €1,6 billion.
The joint venture in Spain will focus on the battery cell factory in Sagunto. Volkswagen will retain a 51% stake, while Gotion will hold 49%. In Slovakia and Morocco, the ownership structure will be reversed, with Gotion holding 51% and Volkswagen 49%. The Spanish plant is expected to have an annual production capacity of 29,1 GWh, while the Slovakian facility aims for 8,4 GWh.
The Morocco project involves a cathode material plant with an annual capacity of 100 000 tonnes. This facility is intended to supply the battery joint ventures in Europe. The African Development Bank recently granted a €100 million loan for the construction of this site. The construction period for each of the three projects is expected to be no longer than five years.
Volkswagen currently holds a 25% stake in Gotion High-tech. The new agreements are subject to approval from shareholders and regulatory authorities. As of September 28, the investment agreement had not yet been signed. The partnership aims to deepen supply chain collaboration and support Volkswagen’s vertical integration strategy.
