Gotion and Volkswagen AG will establish three joint ventures to manufacture lithium iron phosphate (LFP) batteries and battery materials in Valencia (Spain), Surany (Slovakia), and Kenitra (Morocco).
Announced yesterday as a partnership between Chinese battery manufacturer Gotion High-Tech and its subsidiaries with Volkswagen and its battery subsidiary PowerCo, the total project investment is estimated at approximately €3.222 billion (US$3.66 billion).
While the main focus will be on battery cells for the electric vehicle (EV) sector, some of the planned factories’ output will serve stationary battery energy storage system (BESS) markets.
Gotion will contribute around €1.598 billion, and PowerCo will invest an estimated €1.624 billion.
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Under the agreement, the parties will pursue the following initiatives:
The Valencia joint venture will build a 29.1GWh lithium-ion battery plant with a total investment of approximately €2.262 billion; Gotion will hold a 49% stake.
The Surany joint venture will construct an 8.4GWh lithium-ion battery project requiring a total investment of roughly €480 million; Gotion will hold a 51% controlling stake.
The Moroccan joint venture will develop a 100,000-ton lithium iron phosphate cathode material plant at a total cost of about €480 million; Gotion will hold a 51% controlling stake.
A spokesperson for PowerCo told Energy-Storage.news that the factory in Valencia will focus on producing cells for automotive applications while the Surany factory in Slovakia will produce cells for both EV and BESS markets.
According to the spokesperson, the product split, which has not been disclosed, will be dependent on demand, with automotive prioritised.
Gotion reported operating revenue of RMB 27.776 billion (US$4.14 billion) in its 2026 semi-annual report, a 43.22% year-on-year increase, setting a record-high revenue for the same period over six consecutive years. Net profit attributable to shareholders of the parent company reached RMB 1.386 billion, up 278.05% year-on-year.
According to SNE Research, Gotion’s global power battery installations totaled 28GWh in the period, a year-on-year increase of 43.3%. The company captured a 4.6% global market share, ranking fifth worldwide.
Gotion stated that the joint ventures support its global strategy, accelerate overseas expansion, and deepen its long-standing partnership with the Volkswagen Group. Against the backdrop of rapidly growing global new energy markets, the ventures aim to establish a locally rooted battery supply ecosystem in Europe.
The battery capacity from the ventures will primarily serve Volkswagen’s European market, while cathode material production will secure raw material supplies for Gotion’s overseas battery manufacturing bases.
Additional reporting by Andy Colthorpe.
