Gotion and Volkswagen PowerCo Unite Behind $3.67B European Battery Push

Gotion High-tech and Volkswagen’s battery subsidiary PowerCo are joining forces on a European and North African battery supply chain worth roughly €3.22 billion ($3.67 billion). According to a stock exchange filing, the two partners will set up three joint ventures spanning Spain, Slovakia and Morocco, with Gotion committing about €1.6 billion and PowerCo around €1.62 billion, released in stages.

The biggest slice of the plan lands in Valencia, Spain, where about €2.26 billion is earmarked for 29.1 GWh of annual lithium-ion cell capacity. Gotion intends to take a 49 percent stake in the existing PowerCo Spain entity through a capital increase, leaving PowerCo with a controlling 51 percent. In Šurany, Slovakia, a roughly €480 million project would add 8.4 GWh per year, with Gotion holding 51 percent and PowerCo 49 percent.

A third venture in Kenitra, Morocco, carries a similar €480 million budget and would produce 100,000 metric tons of lithium iron phosphate cathode material annually, mainly feeding the two European cell plants. Construction timelines for all three sites, which exclude land and buildings, are capped at five years, though the partners have yet to sign a binding investment agreement and still need shareholder and regulatory approvals in China and abroad.

The tie-up builds on an already deep relationship: Volkswagen’s China investment arm held 24.28 percent of Gotion as of September 20, making it the battery maker’s largest shareholder. Gotion’s global EV battery installations reached 34.0 GWh in the first seven months of 2026, up 44.2 percent year-on-year, lifting its worldwide market share to 4.7 percent from 3.9 percent and keeping it fifth in the global rankings.