Volkswagen, PowerCo and Gotion deepen partnership with three joint ventures for LFP batteries
Volkswagen Group, PowerCo and Gotion are expanding their partnership into joint industrial production of LFP battery cells and cathode material across Spain, Slovakia and Morocco.
- around 10 percent
- between 40 and 60 percent
- around EUR 470 million
- around EUR 1.1 billion
What Happened
LFP (lithium iron phosphate) batteries offer competitive costs, a long service life and high levels of robustness, making them a key technology for affordable electric mobility in the volume segment. Demand in Europe is expected to grow strongly in the coming years. Volkswagen says Europe currently has no relevant LFP battery production capacity, and the new partnership is intended to change that by expanding regional LFP battery production, diversifying sources of supply for key cathode active materials, and strengthening supply security and the competitiveness of the European battery industry.
- around 10 percent
- between 40 and 60 percent
- Valencia, Spain: LFP battery cells. The PowerCo gigafactory currently under construction is envisaged to be transferred to a joint venture in which PowerCo would hold 51 percent and remain majority shareholder; one major goal is to develop the site into a European production hub for Unified Cells based on LFP technology.
- Šurany, Slovak Republic: LFP battery cells. The Gotion cell factory is intended to be transferred to a joint venture in which Gotion would hold 51 percent and remain majority shareholder, focused on LFP cells for both EV applications and energy storage systems.
- Kenitra, Morocco: LFP cathode material. The joint venture plans a new production facility for cathode material to diversify sources of supply for key cathode active materials, increase supply security and expand the regional value chain; Gotion would hold 51 percent and be majority shareholder.
“I am delighted that we are expanding our long-standing partnership with Gotion into the joint industrial production of LFP batteries to strengthen Europe's battery industry. This marks a major breakthrough for both companies and brings us one step closer to the forefront of electric mobility. Volkswagen is the first European automotive manufacturer to cover the entire battery value chain, from development and cathode materials through to production.”
around EUR 1.1 billion
Gotion is to invest around EUR 1.1 billion to acquire its 49 percent stake in the Valencia site, reflecting its scale and strategic importance as a European production hub.
Under the terms of the agreement, PowerCo is expected to contribute around EUR 470 million in total to the Šurany and Kenitra sites by 2030 to acquire its 49 percent stake. Across the three sites the partners will share investments and industrial responsibilities, and the joint ventures are intended to be jointly managed by PowerCo and Gotion. The agreement remains subject to regulatory approvals and customary closing conditions, including approval by the Gotion shareholders' meeting. Separately, Volkswagen Group, through its subsidiary Volkswagen (China) Investment Co., Ltd. (VCIC), has entered into definitive agreements to sell a 5.3 percent equity stake in Gotion; because Volkswagen had previously agreed not to exercise voting rights for part of its shareholding, the transaction will not reduce the voting rights it exercises in Gotion, and its Board of Directors representation and other nomination rights remain unaffected.
“Volkswagen and PowerCo are building Europe's battery industry. The partnership with Gotion is the next milestone on this path: It strengthens the resilience of our value chain, accelerates industrialization and combines PowerCo's capabilities with the strengths of a long-standing partner.”
Previously from Volkswagen Group
PowerCo's battery build-out has also seen timeline changes outside the joint ventures announced here. In September 2026, PowerCo moved the start of battery cell manufacturing at its Canadian site in St. Thomas to 2029, about two years later than the 2027 date it had been targeting.
Background drawn from MotorClaw's earlier coverage of Volkswagen Group's official releases.
Why this matters
LFP is a cost-competitive, long-life battery chemistry for affordable electric cars, and the source says Europe currently has no relevant LFP production capacity. The joint ventures are meant to expand regional production, diversify supplies of key cathode materials and strengthen Europe's battery industry, with Volkswagen describing itself as the first European automaker to cover the entire battery value chain.
Terms in This Story
- LFP
- Lithium iron phosphate, a battery chemistry used in electric-vehicle cells.
- Cathode active material
- The material that forms a battery cell's positive electrode and is a key input in cell manufacturing.
- Gigafactory
- A very large-scale battery manufacturing plant.
- Energy storage systems (ESS)
- Batteries used to store electricity, for example for the power grid, rather than for driving a vehicle.
Summarised from the linked release; details can be imperfect — always verify against the original source.