Volkswagen and Gotion plan €3.22bn expansion of EV battery production
Volkswagen and Chinese battery maker Gotion High-tech plan to invest a combined €3.22 billion in three production lines in Spain, Slovakia and Morocco. The facilities are expected to provide 37.5 gigawatt hours of battery capacity and 100,000 tonnes of cathode materials annually.
Volkswagen Group and its Chinese partner Gotion High-tech plan to invest a combined €3.22 billion in electric-vehicle battery production in Europe and North Africa. Gotion said in an exchange filing that the three jointly owned production lines would have annual capacity of 37.5 gigawatt hours of lithium-ion batteries and 100,000 metric tonnes of cathode materials. Gotion plans to invest about €1.6 billion in facilities in Spain, Slovakia and Morocco, with Volkswagen contributing a similar amount.
The largest project is an upgrade of Volkswagen subsidiary PowerCo’s plant in Valencia, Spain, which requires total investment of €2.26 billion and is expected to produce 29.1 gigawatt hours annually. Battery cells from the European factories will mainly supply Volkswagen, while Gotion will participate in developing battery-cell production zones on the continent. Volkswagen owns 24.3 per cent of Gotion.
Gotion said the agreements supported its overseas expansion strategy and deepened its partnership with Volkswagen. It delivered 34 gigawatt hours of battery capacity to EV assemblers in the first seven months of 2026, up 44.2 per cent year on year. Its global market share during that period was 4.7 per cent, according to SNE Research.
Gotion and three larger Chinese rivals held a combined 64.4 per cent of the global market. Separately, Volkswagen plans to reduce its holding in Gotion to 19 per cent by selling 96 million shares to a Hefei government-controlled investment firm for 2.3 billion yuan.
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