Volkswagen’s new LFP battery JVs with Gotion will adjust EV and BESS cell production split based on demand  

LinkedIn
Twitter
Reddit
Facebook
Email

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.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

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.

22 February 2027
InterContinental London - The O2, London, UK
The Future of Energy Storage Starts Here Three days in London where developers, IPPs, investors, utilities and the manufacturers building the technology come to close deals, not swap business cards. If you need to be in the room with the people deploying capital into European storage, this is that room.

Read Next

November 6, 2026
Renewables developer D. E. Shaw Renewable Investments (DESRI) and Ford Motor Company’s energy storage subsidiary, Ford Energy, will partner to deploy energy storage in the US.
Premium
November 5, 2026
We catch up with the CEO of Netherlands-headquartered system integrator Alfen to discuss its sodium-ion BESS partnership with CATL and plans for the technology in Europe.
November 4, 2026
LG Energy Solution saw 28% quarter-on-quarter growth in revenue in Q3 2026, with “significant energy storage system (ESS) shipment growth” among the main drivers.
Premium
November 4, 2026
What is LMFP battery chemistry, and why is interest growing in it as a possible alternative to LFP batteries in battery energy storage system (BESS) applications?
November 4, 2026
BESS owner-operators Return and BW ESS have financed and acquired large-scale projects in Spain and France, respectively, totalling a little over 1GWh.