A €480 million joint venture between Chinese battery maker Gotion High-Tech and Volkswagen’s PowerCo subsidiary will land in Kenitra, Morocco, producing lithium iron phosphate (LFP) cathode materials at a planned scale of 100,000 metric tons annually.
The Moroccan plant anchors a wider €3.22 billion collaboration spanning three countries. Its output will feed two battery factories currently in development in Spain and Slovakia, both prioritized for Volkswagen’s European vehicle production needs.
Gotion takes a 51% stake in the Kenitra operation, leaving PowerCo with the remaining 49%. Meanwhile, the Spanish project in Valencia sees Gotion acquiring 49% of PowerCo’s battery facility, and the Šurany site in Slovakia will manufacture lithium-ion cells. Combined, the two European plants target 37.5 gigawatt-hours of annual capacity.
The Kenitra investment slots into a broader Moroccan battery ecosystem already taking shape. Gotion is separately building an integrated facility in the Atlantic Free Zone with phased ambitions reaching 100 GWh. In July, the African Development Bank approved a €100 million loan supporting that project’s first phase, which includes 10 GWh of cell and pack output plus cathode material production.
The partnership also cements an existing relationship. Volkswagen’s Chinese investment arm held 24.28% of Gotion as of late September, making it the largest shareholder. Under the new cooperation framework, Gotion commits roughly €1.6 billion while PowerCo contributes about €1.62 billion across all three ventures.
Final agreements remain unsigned. Shareholder votes and regulatory reviews in China and the host countries still stand between the companies and construction. Gotion also flagged that financing conditions, permit timelines, and market shifts could alter schedules or returns.
The expansion comes as Gotion strengthens its global standing. SNE Research data shows the company’s EV battery installations hit 34.0 GWh through July 2026, up 44.2% year over year, lifting its worldwide market share to 4.7% from 3.9%.
