Volkswagen Teams Up With China's Gotion on Electric-Car Batteries

By Joshua Kirby

Volkswagen is set to partner with China's Gotion High-Tech to produce batteries for electric vehicles in Europe.

The German auto powerhouse, via its subsidiary PowerCo, will partner with battery maker Gotion on three joint ventures in Spain, Slovakia and Morocco. The agreement builds on VW's cooperation with Gotion, which it partially owns and that is a suppler to the group, and aims to drive production of the lithium iron phosphate, or LFP, batteries used in EVs.

A PowerCo factory currently underway in the town of Sagunto near Valencia in Spain will be made into a JV, with Gotion paying 1.1 billion euros ($1.25 billion) to acquire a 49% minority stake. A Gotion cell factory at Surany in Slovakia will similarly be split into a JV, with PowerCo taking a 49% share. A cathode-material factory will meanwhile be set up in the Moroccan town of Kenitra, managed jointly by the two companies. PowerCo will pay around 470 million euros for its stakes in the latter two sites, VW said.

The investment aims to support VW's long-term plans to establish a European battery supply chain, the auto maker said.

VW said it had separately reached agreements to sell a stake of around 5.3% in Gotion, but will remain a strategic investor in the battery company. VW China held 24.45% of Gotion's equity as of last year, according to a company filing.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

September 28, 2026 10:00 ET (14:00 GMT)