As reported by the Spanish trade publication La Tribuna de Automoción, the Volkswagen Group is currently in advanced negotiations with its partner Gotion regarding the acquisition of a majority stake in the battery cell factory under construction in Sagunto, which – being near Valencia – PowerCo refers to as Gigafactory Valencia. According to sources, discussions have advanced well, and the Chinese group’s CEO, Zhen Li, has reportedly made high-level visits to the site.
At the heart of negotiations – which are being led by VW’s Board Member for Technology, Thomas Schmall – is the establishment of a joint venture. Under this arrangement, Gotion would take control of the Valencia plant, while PowerCo would remain as a minority shareholder. For Volkswagen, the factory is strategically indispensable, as it is to supply the company’s Spanish and Portuguese vehicle plants with the Unified Cell for EVs – which is already in production in Salzgitter.
A potential partnership between VW, PowerCo, and Gotion is not new to the industry. Volkswagen is the largest shareholder in the Chinese company, holding around a quarter of its shares, and Gotion ranks among the global top five battery cell manufacturers. However, as the battery cell factory in Sagunto is not yet operational, Gotion currently supplies cells for models produced in Spain, such as the ID. Polo and the Cupra Raval, from its factory in Hefei, China. Series production of the Unified Cell began there in November 2025. Previously, Gotion had served as a technology partner for the development of the Unified Cell and the construction of PowerCo’s cell production facility in Salzgitter, which reportedly involved hundreds of Chinese specialists.
