On July 27, 2026, it is reported that Volkswagen Group is in advanced negotiations with its Chinese partner, Gotion High-Tech, over the acquisition of VW’s battery plant in Valencia, Spain. According to industry sources, the talks have reached a late stage, with Gotion Chairman Li Zhen recently leading a senior management team to the site for an on-site inspection to evaluate investment and cooperation options.
The Valencia battery facility is operated by PowerCo, Volkswagen’s battery subsidiary. In 2022, VW announced the construction of the plant in Sagunto, near Valencia, with a planned investment of 3 billion euros and an expected 3,000 direct jobs. The plant was designed with an annual capacity of 40 GWh, producing battery cells for VW Group brands including Volkswagen, Škoda and SEAT.
Production was originally scheduled to begin in September 2026, but due to supplier issues and construction delays, the start-up has been postponed to the end of the year. PowerCo Spain recently replaced its CEO, with Ralf Schmid succeeding Andreas Rottmann.
Volkswagen and Gotion have a long-standing partnership. In May 2020, VW announced its stake in Gotion, becoming the first foreign automaker to directly invest in a Chinese battery company. In 2021, VW China became the largest shareholder of Gotion through a private placement. As of the third quarter of 2025, VW China held 24.29% of Gotion’s shares.
In November 2025, Gotion held a mass-production delivery ceremony for standard cells in Hefei, Anhui Province, China, planning to deliver high-performance LFP and other standard cells to Volkswagen Group between 2026 and 2032. The two companies are also jointly building a battery factory in Salzgitter, Germany.
Gotion already has a presence in Spain. Recently in May 2026, the company announced an investment of over 940 million euros in Valladolid to build a battery cathode material plant and a recycling facility. The potential cooperation on the Valencia plant is seen as another strategic move by Gotion to expand its footprint in Spain’s battery industry chain.
Source: WeChat Official Account——鑫椤锂电
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