Volkswagen and Gotion Planned $3.68 Billion Investment
The companies aim to build three joint venture battery facilities across Spain, Slovakia, and Morocco.
Updated on Sept. 28, 2026 in Electric Vehicles
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Volkswagen and Gotion have announced a $3.68 billion partnership to develop three battery-related joint ventures. The expansion targets increased manufacturing capacity in Europe and Africa to support electric vehicle production.
Why it matters
Volkswagen aims to reduce battery pack costs below $100 per kWh by standardizing production technology across global partners. This strategy utilizes identical factory blueprints to scale operations efficiently and maintain control over supply chains.
The plan includes 29.1 GWh of annual capacity in Spain, 8.4 GWh in Slovakia, and 100,000 metric tons of cathode materials in Morocco. Volkswagen currently holds a 24.28% ownership stake in Gotion.
The players
Volkswagen
This German automotive manufacturer is the parent company of brands including Audi, Porsche, and Volkswagen and is aggressively expanding its battery supply chain.
Gotion
Based in China, this battery manufacturer has seen its global market share grow to 4.7% as of 2026 and is a key partner in Volkswagen's electrification strategy.
PowerCo
Established by Volkswagen in 2022, this unit serves as the automaker's dedicated division for managing battery cell manufacturing and development.
The details
The joint ventures will be structured with 51% to 49% ownership stakes based on the project location. Through its PowerCo unit, Volkswagen will implement a standard factory blueprint to ensure uniform machinery and building layouts across the new sites.
Timeline
Volkswagen founded its PowerCo battery unit in 2022.
Media outlets reported initial talks regarding the Valencia plant in July 2026.
Volkswagen held a 24.28% stake in Gotion on September 20, 2026.
The Nysa, Poland facility targets 2.2 million electric vehicle supply capacity by 2030.
Roadmap
This move signals a broader transition toward standardized global battery manufacturing to counter rising production costs. By deploying identical factory blueprints, Volkswagen aims to consolidate its competitive standing against other major automakers scaling electric fleets.
Standardized battery production is intended to lower the per-kWh cost, which may eventually translate to more affordable electric vehicle MSRPs for consumers. As these facilities scale, buyers may see increased vehicle availability and more consistent charging performance across different markets.
The takeaway
Volkswagen is prioritizing a unified manufacturing model to drive down costs as it competes in the saturated electric vehicle market. Prospective buyers should monitor these infrastructure projects as indicators of when EV production capacity will increase globally.
Further reading
Find more industry developments at the Electric Vehicles hub.
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Should Western automakers rely on Chinese firms for core electric vehicle battery production?
