Volkswagen and Gotion expand partnership in LFP batteries — InsideEVs

Volkswagen is expanding its partnership with Chinese battery manufacturer Gotion through three joint ventures in Spain, Slovakia and Morocco. As InsideEVs reports, the agreements are intended to develop a manufacturing base for lithium iron phosphate (LFP) batteries for the mass-market electric vehicle segment.

Investment in Valencia

Gotion will pay $1.25 billion for a 49% stake in PowerCo's plant in Valencia, Spain. The facility will be jointly managed by PowerCo and Gotion. Volkswagen said the plant is to become a European production hub for unified LFP cells. According to financial documents, its production capacity will amount to 29.1 GWh.

The unified prismatic battery cell is being developed by Volkswagen subsidiary PowerCo. The group plans to use this platform for different battery chemistries, including potentially solid-state batteries, in models of various brands, from Volkswagen to Porsche.

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Projects in Slovakia and Morocco

Volkswagen also plans to spend about $535 million by 2030 to acquire a 49% stake in a Gotion plant in Slovakia and establish a facility in Morocco. The Slovak plant, with a capacity of 8.4 GWh, is expected to produce LFP cells for electric vehicles and stationary energy storage systems. The Moroccan facility will manufacture cathode materials for such batteries.

Volkswagen called LFP batteries a key technology for affordable electric mobility in the mass-market segment. The company expects their share of the European market to increase from the current 10% to 40–60% by 2030. At the same time, the automaker noted that Europe currently lacks significant LFP battery production capacity.