Volkswagen in Talks with Chinese Partner on Spanish Battery Plant, Trade Outlet Reports

Volkswagen is reportedly in advanced discussions with its partner Gotion about the Chinese battery manufacturer acquiring a stake in the German automaker's battery plant located in Valencia, Spain. The publication La Tribuna de Automocion cited industry sources, indicating that Gotion's CEO, Li Zhen, has made high-level visits to the facility to evaluate the potential investment.

The Valencia plant is operated by PowerCo, Volkswagen's dedicated battery business unit, which was established to bolster the company's European battery production and lessen its dependence on Asian suppliers. This strategic move is part of Volkswagen's effort to compete more effectively with electric vehicle rivals like BYD and Tesla. The plant is expected to commence production by the end of the year, with plans for a gradual scale-up.

While PowerCo declined to comment on the specific report, it acknowledged in an emailed statement to Reuters that it "regularly evaluates strategic opportunities, including potential collaborations with partners." Gotion had no immediate comment when reached outside of business hours. Volkswagen has been under pressure to cut costs and has committed to streamlining its investment portfolio and adjusting its European car production.

The report suggested Gotion might seek a majority stake in a joint venture for the Valencia site. However, a PowerCo spokesperson clarified that the company does not intend to relinquish control of the facility.

“

PowerCo regularly evaluates strategic opportunities, including potential collaborations with partners.