Volkswagen sells half of its battery gigafactory in Valencia to the Chinese giant Gotion

The Chinese manufacturer Gotion has signed an agreement with Volkswagen to establish three joint ventures in Europe, through which two battery gigafactories (one in Slovakia and one in Spain) as well as a cathode material plant in Morocco will be managed jointly. This will involve an investment of 3.222 billion euros from both partners.

While Gotion will hold a 51% majority stake in the factories in Slovakia and Morocco, it will only own 49% in the Spanish facility. This refers to the gigafactory in Sagunto (Valencia), one of Volkswagen Group’s most important industrial projects in Spain. The partnership with the Asian company is expected to enhance the competitiveness of these facilities.

Gotion has announced the signing of an engineering and construction contract worth 1.094 billion euros for the plant in Levante. By retaining ownership of the Sagunto facility, PowerCo (Volkswagen’s battery division) ensures continuity in project governance, strategic direction, and operational oversight.

Sagunto will become a key component of Volkswagen’s electrification plans in the coming years. As a specialized hub for LFP (lithium-iron-phosphate) batteries, the gigafactory will ultimately have a larger capacity than initially planned: in its first phase, it will feature two production units with an annual capacity of 30 GWh, up from the previously projected 20 GWh.

Sagunto’s initial capacity will be 30 GWh per year

The factory is expected to begin operations next year, though no specific timeline has been set yet. Initially, Sagunto will supply cells to Volkswagen’s plants on the Iberian Peninsula: Landaben (Navarra), which produces the Skoda Epiq and Volkswagen ID. Cross; Martorell (Barcelona), where the CUPRA Raval and Volkswagen ID. Polo are assembled; and Palmela (Portugal), which will receive the Volkswagen ID. Lupo/ID. Up in 2027.

The three Iberian plants will handle the production of the group’s small electric cars, with the Portuguese factory producing models in segment A (urban vehicles), the Catalan factory those in segment B (utility vehicles), and the Navarrese factory those in segment B-SUV. Each will operate as a multi-brand cluster, following Volkswagen Group’s new production model.

Volkswagen holds a 24.28% stake in Gotion; however, as part of this agreement, the German giant will sell 5.3% of its shares in an effort to reduce and streamline its investment portfolio. In any case, the partnership between the two companies will continue over time, providing Volkswagen with the tools needed to stay competitive in an increasingly challenging global market.

Source | La Tribuna de Automoción