Volkswagen deepens Gotion tie-up with €1.1B battery JV, sells 5.3% stake
What's the deal? Volkswagen Group said today it will expand its partnership with Chinese battery maker GotionDealroom has a profile for this one. Try Dealroom →, forming three European joint ventures while selling a 5.3% equity stake in the manufacturer. Under the agreement, Gotion will invest around €1.1 billion to acquire a 49% stake in a lithium iron phosphate (LFP) battery joint venture in Valencia, Spain.
What's the endgame? The German automaker wants to speed up a European battery supply chain covering the industrial production of LFP battery cells and cathode active materials. Valencia is set to become a European production hub for LFP batteries.
Where's the expansion? Beyond Valencia, the partners agreed to establish joint ventures in Surany, Slovakia, and Kenitra, Morocco. Volkswagen's battery unit, PowerCoDealroom has a profile for this one. Try Dealroom →, is expected to contribute roughly €470 million to the Surany and Kenitra sites by 2030 to secure a 49% stake.
What changes? Volkswagen will keep a significant stake in Gotion after selling the 5.3% holding, according to a company statement. The moves tie the automaker more closely to Gotion's technology even as it trims its direct ownership.
The signal: The deal shows European carmakers leaning on Chinese battery expertise to localise production, while reshaping ownership to keep control of a supply chain increasingly built around LFP chemistry.
Read more: landoncapital.net
