Volkswagen, Gotion Discuss Stake in Spain Battery Plant
Volkswagen and its Chinese partner Gotion are in advanced discussions about a possible equity participation for Gotion in the German automaker’s battery plant located in Valencia, Spain, according to a report by the Spanish trade publication La Tribuna de Automoción.
The talks include the prospect that Gotion could acquire a majority stake in a joint‑venture structure for the Valencia facility, which is operated by PowerCo, Volkswagen’s dedicated battery business unit.
High‑level visits have been made by Gotion’s chief executive officer, Li Zhen, who inspected the operation as part of the assessment process.
The Valencia plant is scheduled to commence production at the end of the current year, with output expected to rise gradually thereafter.
Volkswagen created PowerCo to develop its own battery manufacturing capabilities in Europe, aiming to lessen reliance on Asian suppliers and to compete more effectively with electric‑vehicle manufacturers such as BYD and Tesla. The German automaker is simultaneously pursuing cost‑reduction measures, streamlining its investment portfolio and scaling back car production in Europe.