Gotion Invests $1.25 Billion in Volkswagen Battery Plant in Spain
Major Investment and Strategic Partnership Overview
(changes "bln" to "billion" in headline)
Gotion's Investment in Valencia Battery Plant
BERLIN, Sept 28 (Reuters) - China's Gotion will invest €1.1 billion ($1.25 billion) in Volkswagen's battery plant in Valencia, Spain, becoming a major investor in the site under a broader plan to jointly develop a European battery supply chain.
Volkswagen's Stake and Equity Changes
Volkswagen on Monday said it would sell a 5.3% equity stake in the Chinese battery maker, after which it would "continue to hold a significant stake in Gotion", the German carmaker said in a statement.
Previous Joint Venture Announcements
Gotion had previously announced that it would set up a series of joint ventures with Volkswagen.
Details of the Valencia Plant Partnership
The company will take a 49% stake in the Valencia plant of Volkswagen's battery business PowerCo, which will remain majority shareholder in the site, Volkswagen said, adding that it would become a European production hub for lithium iron phosphate battery, or LFP, batteries.
Expansion into Slovakia and Morocco
Surany, Slovakia Cell Factory
The companies will also partner at Gotion's cell factory in Surany, Slovakia and build a new plant in Kenitra in Morocco. Both will be jointly managed by Gotion and PowerCo, with the Chinese partner retaining a 51% stake.
Statements from Volkswagen Leadership
Comments from Technology Chief Thomas Schmall
Volkswagen technology chief Thomas Schmall hailed the expansion of the company's long-standing partnership with Gotion.
Significance for Electric Mobility
"This marks a major breakthrough for both companies and brings us one step closer to the forefront of electric mobility," Schmall said.
Additional Information
($1 = 0.8800 euros)
(Reporting by Rachel More, editing by Thomas Seythal)