Volkswagen Group and Gotion High-tech have outlined a joint spending program worth about €3.22 billion ($3.67 billion) to expand battery-cell and upstream-material capacity in Europe and North Africa. The move would broaden their supply-chain collaboration as Volkswagen seeks more localized sourcing for its European EV business.
A Monday exchange filing by Gotion said the two partners would set up three joint ventures via subsidiaries, located in Spain, Slovakia and Morocco. Funding would be split roughly evenly: Gotion would put in about €1.6 billion, while Volkswagen’s PowerCo unit would supply about €1.62 billion. The money would be released in stages.
Spain would host the biggest single project. In Valencia, the partners envisage roughly €2.26 billion of spending on 29.1 GWh of annual lithium-ion cell output. Gotion would take a 49% holding in the already-existing PowerCo Spain by injecting capital; PowerCo would keep a 51% majority and remain in control.
Slovakia’s Šurany site would receive about €480 million for 8.4 GWh of annual lithium-ion capacity. Gotion would own 51%, with PowerCo holding 49%.
In Kenitra, Morocco, a further €480 million is planned for a lithium iron phosphate cathode-material plant with 100,000 metric tons of yearly capacity. Output would be directed first to the two cell-making joint ventures. Gotion would again hold 51%, while PowerCo would own 49%.
For the two European cell projects, Volkswagen’s European needs would come first. The exact volumes and supply guarantees would be settled in later binding contracts.
The filing’s construction figures do not cover land or factory buildings. The partners expect each project to be completed within five years, though actual progress may differ.
The tie-up would deepen equity and commercial links between the two groups. Volkswagen (China) Investment Co. owned 24.28% of Gotion as of Sept. 20, making it the battery maker’s top shareholder.
Gotion would help develop Volkswagen’s main European cell-production base, according to the filing, while PowerCo would invest in Gotion’s European and African battery and materials ventures. Together, they aim to create a localized battery supply network for Europe.
Gotion’s board backed the proposal on Sept. 28. The investment agreement has not yet been signed, and the deal still needs shareholder consent plus regulatory approvals in China and abroad.
Gotion cautioned that the projects would raise capital spending in the near term, and that financing conditions, approvals and market shifts could alter construction timelines and projected returns.
The plan lands as Gotion strengthens its position in the worldwide battery market. SNE Research, a South Korean research firm, said Gotion’s global EV battery installations reached 34.0 GWh in the first seven months of 2026, a 44.2% year-on-year increase. It ranked fifth globally, and its share climbed to 4.7% from 3.9%.
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