Advanced discussions could give Gotion a stake in Volkswagen's battery plant in Valencia, Spain. The PowerCo-operated facility is expected to begin production by the end of 2026. A trade report said Gotion could hold a majority stake in a joint venture, although PowerCo said it did not plan to cede control of the site.
Snapshot
Transaction - Gotion is reportedly considering a stake in the plant.
Plant operator - Volkswagen battery subsidiary PowerCo operates the facility.
Location - The battery plant is in Valencia, Spain.
Negotiation stage - The parties are reportedly in advanced discussions.
Potential structure - Gotion could hold a majority stake in a joint venture.
Production target - Operations are expected to begin by the end of 2026
Volkswagen, a Germany-based automaker, and Chinese battery manufacturer Gotion are reportedly in advanced discussions over a possible stake in Volkswagen's battery plant in Valencia, Spain. Spanish trade publication La Tribuna de Automoción first reported the negotiations, citing industry sources.
The discussions have included visits by Gotion Chief Executive Li Zhen to assess the plant and its operations. The Reuters report did not provide a proposed transaction value or confirmed ownership percentage.
Volkswagen's battery subsidiary PowerCo operates the Valencia facility. The plant is expected to begin production by the end of 2026 and gradually increase its output following the production start.
The reported transaction could involve Gotion acquiring a majority stake in a joint venture established for the Valencia site. However, PowerCo said it had no plans to surrender control of the facility.
PowerCo declined to comment directly on the reported negotiations. It said the company regularly evaluates commercial opportunities, including possible collaborations with external partners. Gotion did not provide an immediate response.
Volkswagen established PowerCo to develop its battery manufacturing operations in Europe and reduce its dependence on Asian battery suppliers. The automaker is also reviewing its investment portfolio and reducing vehicle production capacity in Europe as part of its cost-reduction programme.