Gotion eyes stake in PowerCo’s Spanish battery cell factory

VW subsidiary PowerCo's battery cell factory in Spain could soon become a joint venture with Gotion before construction is even complete. According to a Spanish media report, VW is considering bringing its Chinese stakeholder on board at the site near Valencia. As reported by the Spanish trade publication La Tribuna de Automoción, the Volkswagen Group is currently in advanced negotiations with its partner Gotion regarding the acquisition of a majority stake in the battery cell factory under construction in Sagunto, which – being near Valencia – PowerCo refers to as Gigafactory Valencia. According to sources, discussions have advanced well, and the Chinese group’s CEO, Zhen Li, has reportedly made high-level visits to the site. At the heart of negotiations – which are being led by VW’s Board Member for Technology, Thomas Schmall – is the establishment of a joint venture. Under this arrangement, Gotion would take control of the Valencia plant, while PowerCo would remain as a minority shareholder. For Volkswagen, the factory is strategically indispensable, as it is to supply the company’s Spanish and Portuguese vehicle plants with the Unified Cell for EVs – which is already in production in Salzgitter. A potential partnership between VW, PowerCo, and Gotion is not new to the industry. Volkswagen is the largest shareholder in the Chinese company, holding around a quarter of its shares, and Gotion ranks among the global top five battery cell manufacturers. However, as the battery cell factory in Sagunto is not yet operational, Gotion currently supplies cells for models produced in Spain, such as the ID. Polo and the Cupra Raval, from its factory in Hefei, China. Series production of the Unified Cell began there in November 2025. Previously, Gotion had served as a technology partner for the development of the Unified Cell and the construction of PowerCo’s cell production facility in Salzgitter, which reportedly involved hundreds of Chinese specialists. New customer prospects and local delays If Gotion’s entry into the project succeeds, it could expand the customer base of the Valencia factory. According to industry sources, Gotion aims to supply other automotive manufacturers in Spain in the future, with Ford’s plant in Almussafes mentioned as a potential customer. This comes as the Chinese carmaker Geely is currently planning to take a stake in the plant. Meanwhile, the Sagunto project is facing delays. According to sources, the start of pre-series production has been pushed back to December 2026, while series production was not expected to begin before summer 2027. Additionally, staff recruitment is behind schedule: currently, only 50 of the 500 employees required for pre-series production have been hired. PowerCo España declined to comment on market speculation but emphasised to La Tribuna de Automoción its unwavering commitment to the site and its swift implementation. In response to an inquiry from Automobilwoche, PowerCo stated that it “regularly reviews strategic opportunities, including potential collaborations with partners.” A spokesperson added: “However, we have no plans to relinquish control of Gigafactory Valencia. PowerCo is fully committed to the Gigafactory in Sagunto and will continue to drive its development at pace.” This statement does not rule out Gotion’s involvement in the project but suggests that PowerCo would retain a majority stake in such a scenario. Regardless of developments in Sagunto, Gotion is also advancing its plans for a factory in Valladolid, Spain. Following recent funding approvals under the Perte-VEC programme, a facility for cathodes and battery recycling is set to be established first. latribunadeautomocion.es (ES), automobilwoche.de (DE)