Volkswagen, Gotion Negotiate Valencia Battery Stake

Volkswagen, Gotion Negotiate Valencia Battery Stake

Volkswagen and its Chinese partner Gotion are engaged in advanced discussions concerning a potential equity arrangement that could grant Gotion a majority stake in the battery manufacturing facility located in Valencia, Spain. The plant is operated by PowerCo, Volkswagen’s dedicated battery business unit, and the talks have progressed to the point where Gotion’s chief executive officer, Li Zhen, has undertaken high‑level visits to the site to evaluate the operation firsthand.

PowerCo has indicated that the Valencia facility is scheduled to commence production by the end of the current year, with a phased increase in output thereafter. In an emailed statement to Reuters, PowerCo noted that it regularly assesses strategic opportunities, including collaborations with external partners, underscoring the relevance of the current negotiations.

Volkswagen established PowerCo to build indigenous battery manufacturing capacity in Europe, aiming to lessen dependence on Asian suppliers and to compete more effectively with other electric‑vehicle manufacturers such as BYD and Tesla. Concurrently, the German automaker is pursuing cost‑reduction measures, streamlining its investment portfolio, and reducing overall car production in Europe.

If the discussions culminate in an agreement, Gotion could acquire a majority interest in a joint‑venture structure for the Valencia location, thereby deepening its involvement in European battery supply chains.