Battery cells on display in a Gotion High-tech file photo. Credit: Gotion High-tech
- The companies plan battery projects in Spain and Slovakia with combined annual capacity of 37.5 GWh, alongside a cathode materials project in Morocco.
- Gotion plans to invest about €1.598 billion, while Volkswagen’s PowerCo plans to contribute about €1.62 billion.
Gotion High-tech (SZSE: 002074) and Volkswagen Group plan to jointly invest about €3.22 billion ($3.67 billion) in battery and materials production projects in Europe and North Africa, deepening supply chain cooperation to serve Volkswagen’s European market.
The companies plan to establish 3 joint ventures through their subsidiaries in Spain, Slovakia and Morocco, Gotion said in a stock exchange filing on Monday.
Gotion plans to invest about €1.6 billion in total, while Volkswagen’s PowerCo plans to contribute about €1.62 billion, with funding to be provided in stages.
The largest project, in Valencia, Spain, calls for an investment of about €2.26 billion to build annual lithium-ion battery production capacity of 29.1 GWh.
Gotion plans to acquire a 49% stake in the existing PowerCo Spain through a capital increase. PowerCo will retain control with a 51% stake after the transaction.
The project in Šurany, Slovakia, involves a planned investment of about €480 million for annual lithium-ion battery production capacity of 8.4 GWh. Gotion will hold 51% and PowerCo 49%.
Cells produced by the 2 European projects will prioritize Volkswagen’s demand in Europe. Specific purchase volumes and supply assurance arrangements remain subject to subsequent definitive agreements.
The companies also plan to invest about €480 million in Kenitra, Morocco, to build a lithium iron phosphate cathode materials project with annual capacity of 100,000 metric tons, prioritizing supplies to the 2 battery joint ventures.
Gotion will also control the Moroccan joint venture with a 51% stake, while PowerCo will hold the remaining 49%.
The construction scope specified in the filing for all 3 projects excludes land and factory buildings. Each project is expected to take no more than 5 years to build, subject to actual construction progress.
The cooperation will further strengthen the companies’ equity and business ties. Volkswagen (China) Investment Co held a 24.28% stake in Gotion as of September 20, making it the battery maker’s largest shareholder.
Gotion said it will participate in the development of Volkswagen’s key European cell production base, while PowerCo will take stakes in Gotion’s battery and materials projects in Europe and Africa to jointly build a localized battery supply network for Europe.
Gotion’s board approved the proposal on September 28, but the companies have yet to sign the investment agreement. The transaction still requires shareholder approval and government clearances in China and overseas.
The projects will increase capital expenditure in the near term, Gotion said, adding that financing, approvals and market changes could affect construction progress and expected returns.
The investment plan comes as Gotion gains share in the global battery market.
Its global EV battery installations totaled 34.0 GWh in the first 7 months of 2026, up 44.2% from a year earlier, according to South Korean market research firm SNE Research.
Gotion High-tech ranked fifth globally during the period, with its market share rising to 4.7% from 3.9% a year earlier.
Market share of world’s top EV battery makers (Jan-Jul 2026)
Market Share of World’s Top EV Battery Makers (Jan-Jul 2026)
Company
Market Share (%)
Installations (GWh)
CATL
39.9%
289.6
BYD
14.7%
106.7
LGES
8.3%
60.3
CALB
5.1%
37.3
Gotion
4.7%
34.0
Panasonic
3.6%
26.2
Eve Energy
3.5%
25.0
SK On
3.1%
22.3
Svolt
2.6%
18.9
Rept
2.3%
16.9
Others
12.1%
88.1
($1 = €0.8783)
