Volkswagen is betting on a closer partnership with China's Gotion in the field of batteries. According to Automobilwoche, the automaker intends to expand the European production of relatively inexpensive lithium-iron-phosphate cells and thereby reduce dependence on third-party suppliers.
Cooperation will develop in several directions at once. Gotion will receive a share in the PowerCo plant in Sagunto in Spain, where it is planned to produce batteries. In addition, the companies will jointly manage an enterprise for the production of cells in Surany in Slovakia and a cathode materials plant in Kenitra in Morocco.
Under the terms of the deal, Gotion will invest 1.1 billion euros in the Spanish project. Volkswagen, in turn, will invest 470 million euros in joint ventures in Slovakia and Morocco. PowerCo will retain 51% of the Spanish plant and 49% each in the other two companies.
The partnership will be based on LFP technology. It is considered cheaper, safer and more durable than NMC chemistry, although it is inferior to it in terms of energy density. For Volkswagen, this is an important step towards more affordable electric vehicles, as it is these batteries that are planned to be used in new mass models.
Production in Valencia is scheduled to start next year. Batteries from this facility are expected to be supplied for Volkswagen ID models. Polo and ID. Cross, as well as for Škoda Epiq and Cupra Raval.
The partners are not limited to LFP batteries only. PowerCo and Gotion are also working on sodium-ion and solid-state technologies that could form the basis for next-generation batteries.
At the same time, Volkswagen will reduce its direct stake in Gotion from 24% to 19%. The concern expects that such a scheme will allow PowerCo to become more technologically independent, but it will not require too much investment at the start. At the same time, dependence on Chinese expertise will remain.
PowerCo continues to look for new investors and may enter the stock exchange in the future. However, the company must first prove that it is capable of establishing profitable mass production of battery cells in Europe.