VW, Gotion eye $3.7bn battery investment in Europe, Africa
Volkswagen and Gotion High-Tech Co plan to invest €3.22-billion ($3.7-billion) in battery facilities in Europe and North Africa as they push to set up an electric vehicle supply chain outside China.
The German automaker and Gotion are eyeing to build battery plants in Spain and Slovakia and a facility in Morocco to make cathode materials, the Chinese manufacturer said in a statement. The factories will be run by joint ventures, with the monetary investment split almost equally by the partners.
Gotion’s shares rose by their daily limit of 10% in Shenzhen on Tuesday. The stock is still down more than a quarter this year.
The sites would bolster Europe’s battery-making capabilities after the failure of Sweden’s Northvolt and Britishvolt in the UK, which struggled with technology shortcomings and high costs. Volkswagen once had big plans to make batteries in-house via its PowerCo unit but has since pared back those ambitions.
VW is already the biggest single shareholder of Hefei-based Gotion, but the new investment signals a strengthening of their ties as competition in the Chinese and European car markets intensifies. Gotion has been stepping up its expansion outside China and aims to double overseas shipments this year.
The Spanish site in Valencia will have an annual output of 29.1 GWh, making it one of the larger ones in the region. The plant in Šurany, Slovakia, is smaller at 8.4 gigawatt-hours. The Moroccan factory in Kenitra will make around 100 000 tons of lithium-iron-phosphate, or LFP, cathode materials a year.
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