Gotion to Invest $1.25 Billion in Volkswagen's Valencia Battery Plant

BERLIN, Sept 28, 2026 — China's Gotion will invest €1.1 billion ($1.25 billion) in Volkswagen's battery plant in Valencia, Spain, taking a 49% stake in the facility owned by VW's battery unit PowerCo, which will retain majority control. The plant will serve as a European production hub for lithium iron phosphate (LFP) batteries. In a reciprocal arrangement, PowerCo will invest €470 million for 49% stakes in two Gotion sites: a cell factory in Šurany, Slovakia, and a cathode material facility in Kenitra, Morocco. VW, Gotion's largest single shareholder with 24%, said it has agreed to sell a 5.3% stake worth $373 million to an unnamed buyer. The German automaker is cutting 100,000 jobs in its largest-ever restructuring and reducing its investment portfolio. The deal deepens Chinese investment in Europe ahead of expected Brussels measures to shield EU industry from cheaper Chinese electric vehicle imports.