Volkswagen is in advanced negotiations with Chinese manufacturer Gotion regarding a stake in its Valencia, Spain battery facility. The partnership aims to reduce production costs and improve competitiveness against electric vehicle rivals Tesla and BYD.
PowerCo, Volkswagen’s battery subsidiary, operates the plant and expects to begin production by the end of 2024. While reports indicate Gotion may seek a majority stake in a joint venture, PowerCo maintains it will not cede control of the facility.
Gotion’s CEO recently conducted high-level site visits to evaluate the operation. This potential deal aligns with Volkswagen’s ongoing restructuring and cost-cutting measures amid difficult market conditions in China.