Gotion shareholders approve €3.22 billion PowerCo battery joint ventures

Gotion disclosed the approval in its third-quarter report on 29 October. The three ventures cover LFP cell production in Valencia and Šurany and LFP cathode material in Kenitra. Gotion is to contribute about €1.60 billion and PowerCo about €1.62 billion, with funding provided in stages, according to Gotion's filing.

Valencia

The Valencia plant near Sagunto is planned at 29.1 GWh of annual cell capacity and about €2.26 billion of investment, according to Gotion's filing. Under the agreement, PowerCo would keep a 51% controlling stake and Gotion would hold 49% after investing about €1.1 billion. Volkswagen said the factory under construction is envisaged to be transferred into the joint venture and developed into a European production hub for its LFP-based Unified Cell platform. The venture is intended to be jointly managed by PowerCo and Gotion.

Slovakia and Morocco

Šurany in Slovakia is planned at 8.4 GWh for about €480 million, with Gotion to hold 51% and PowerCo 49%. The existing Gotion factory project is intended to transfer into the joint venture. It will make LFP cells for electric vehicles and stationary storage; the split has not been disclosed. Kenitra in Morocco is planned to produce 100,000 tonnes a year of LFP cathode material for about €480 million, mainly to supply the two cell plants. Gotion is to hold 51% of that venture.

Construction

Shareholders also approved a combined €1.094 billion of construction contracts for the Valencia cell plant. Gotion Spain Green Energy, a wholly owned subsidiary, plans to sign two engineering, procurement and construction contracts with PowerCo Spain worth €295 million and €799 million. Gotion will take a major construction role in the project. Volkswagen said PowerCo is expected to contribute around €470 million to the Šurany and Kenitra sites by 2030 to acquire its 49% stakes. The construction scope in the filing excludes land and factory buildings, and each project is expected to take up to five years.

The September agreement still needs regulatory clearances in China and overseas, and the companies have yet to sign the investment agreement. Specific cell purchase volumes and supply guarantees remain subject to later agreements. Gotion said the projects will raise capital expenditure in the near term and that financing, approvals and market changes could affect construction schedules and expected returns.

Why it matters

Volkswagen puts LFP's share of the European battery market at around 10% today and forecasts 40% to 60% by 2030. Europe currently has no relevant LFP cell production capacity, according to the same statement. The three joint ventures are meant to expand regional LFP production and diversify cathode material supplies. Gotion ranked fifth globally in EV battery installations in the first seven months of 2026 with a 4.7% market share, up from 3.9% a year earlier, according to SNE Research. Installations rose 44.2% to 34.0 GWh.

Volkswagen (China) Investment held 24.28% of Gotion as of 20 September, making it the largest shareholder. Volkswagen has agreed to sell a 5.3% stake to Hefei Construction Investment and said it will remain a strategic investor with board representation and other nomination rights.