€3.2B Battery Investment
Volkswagen and Gotion Plan €3.2 Billion Investment in Three Battery Ventures
Anonymous
Volkswagen’s PowerCo and China’s Gotion plan to invest about €3.22 billion in three joint ventures in Valencia, Spain; Šurany, Slovakia; and Kenitra, Morocco, expanding battery and materials production for the European supply chain. The largest project, in Valencia, is planned to produce 29.1 gigawatt-hours of batteries annually, while the Slovakian site is designed for 8.4 gigawatt-hours; the Moroccan venture will produce lithium iron phosphate cathode materials. Volkswagen will sell a 5.3% stake in Gotion but retain a significant holding, and PowerCo will control the Valencia venture while Gotion will hold majority stakes in the Slovakian and Moroccan projects.
Key Points
1
The planned investment is split between the partners: Gotion expects to contribute approximately €1.598 billion, while PowerCo expects to contribute approximately €1.624 billion, with funding provided in stages.
2
Cells made at the Valencia and Šurany projects are expected to prioritize Volkswagen’s European demand; specific purchase volumes and supply assurances still depend on later definitive agreements.
3
The Kenitra project is planned to produce 100,000 metric tons of cathode materials annually, with supplies prioritized for the two battery joint ventures.
4
Gotion’s wholly owned subsidiary separately signed a €1.094 billion engineering, procurement and construction contract with PowerCo Spain.
5
The construction scope for all three projects excludes land and factory buildings, and each project is expected to take no more than five years to build, subject to actual progress.
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