Volkswagen in talks with Chinese partner on Spanish battery plant, trade outlet reports
Volkswagen and Gotion Discuss Potential Stake in Valencia Battery Plant
Advanced Negotiations and High-Level Visits
BERLIN, July 27 (Reuters) - Volkswagen and its partner Gotion are in advanced talks about a possible stake for the Chinese company in the German carmaker's battery plant in Valencia, Spanish trade publication La Tribuna de Automocion reported on Monday.
The process has involved high-level visits from the Chinese battery manufacturer's CEO, Li Zhen, to evaluate the operation, the report said, citing industry sources.
PowerCo's Role and Production Plans
Volkswagen's upstart battery business PowerCo operates the plant, which is expected to begin production at the end of the year and gradually scale up.
PowerCo declined to comment on the report in an emailed statement to Reuters.
Strategic Opportunities and Partnerships
"PowerCo regularly evaluates strategic opportunities, including potential collaborations with partners," the statement said.
Gotion had no immediate comment when contacted outside business hours.
Volkswagen's Battery Strategy in Europe
Volkswagen created PowerCo to build its own battery business in Europe, reducing reliance on Asian manufacturers as it seeks to catch up with EV rivals such as BYD and Tesla.
Cost-Cutting and Investment Adjustments
Under pressure to cut costs, the company has also pledged to streamline its sprawling investment portfolio and scale back car production in Europe.
Potential Joint Venture and Stake Details
The report said Gotion could take a majority stake in a joint venture for the Valencia site.
PowerCo's Position on Control
A PowerCo spokesperson said the company had no plan to cede control of the site.
Reporting Credits
(Reporting by Rachel More in Berlin, Ju-min Park in Beijing and Victoria Waldersee in Madrid, Editing by Miranda Murray)