Volkswagen deepens Gotion partnership, sells 5.3% stake

Investing.com -- Volkswagen Group said today it will expand its partnership with Gotion and speed up development of a European battery supply chain through several joint ventures, while also selling a 5.3% equity stake in the Chinese battery manufacturer.

The German automaker will maintain a significant stake in Gotion after the transaction, according to a company statement.

The partners agreed to establish three joint ventures in Valencia, Spain, Surany, Slovakia, and Kenitra, Morocco. Valencia will become a European production hub for LFP batteries, the company said.

The expanded partnership will include industrial production of LFP battery cells and cathode active materials.

PowerCo is expected to contribute approximately €470 million to the Surany and Kenitra sites by 2030 to acquire its 49% stake. The agreement calls for Gotion to invest around €1.1 billion to acquire its 49% stake in the Valencia site.

Volkswagen said the stake sale aims to optimize equity structures and support long-term strategic synergies.

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