Volkswagen to Jointly Produce Battery Cells for Europe with PowerCo, Gotion

11:56 PM EDT, 09/28/2026 (MT Newswires) -- Volkswagen Group (VOW.F, VOW3.F), its battery cell manufacturing unit PowerCo, and China's Gotion High Tech agreed to extend their collaboration to include the development of lithium iron phosphate battery cells and cathode active materials. The partners will form three new joint ventures for production sites in Valencia, Spain, Šurany, Slovak Republic, and Kenitra, Morocco, establishing a regional battery supply chain for Europe, according to a Monday release. The Spain and Slovak plants will produce LFP batteries, while the Morocco facility will manufacture cathode active material. The German automotive group's PowerCo subsidiary will inject 470 million euros by 2030 into the Šurany and Kenitra sites to acquire a 49% stake, while Gotion will own the remaining 51% in both ventures. Meanwhile, the latter will invest 1.1 billion euros to buy a 49% interest in the Valencia site, and 51% will be held by PowerCo. The agreement, which also includes joint procurement and sales activities in Europe, is subject to regulatory approvals and closing conditions.