Volkswagen Group and Gotion Form Joint Ventures to Localize European LFP Battery Supply

Volkswagen Group, its battery subsidiary PowerCo and Chinese battery manufacturer Gotion are strengthening their long-standing partnership to support the growth of Europe’s electric vehicle industry. The companies will work together to expand the production of lithium iron phosphate (LFP) batteries, a technology valued for its competitive cost, long service life and high level of safety.

The partnership will create joint ventures across three locations. In Valencia, Spain, the partners plan to produce LFP battery cells at PowerCo’s gigafactory, which is currently under construction. In Šurany, Slovakia, Gotion’s battery plant will focus on producing LFP cells for electric vehicles and energy storage systems.

A third project is planned in Kenitra, Morocco, where the companies intend to establish a facility for producing cathode materials used in LFP batteries. This facility will help diversify raw material supplies, improve supply security and strengthen the regional battery value chain.

The collaboration is an important step toward building a stronger and more independent European battery industry. Demand for LFP batteries is expected to rise significantly in the coming years as automakers seek more affordable battery solutions for mass-market electric vehicles.

PowerCo is expected to invest around €470 million in the Šurany and Kenitra projects, while Gotion plans to invest approximately €1.1 billion in the Valencia site. The agreement is still subject to regulatory approvals and other customary conditions.

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