Chinese battery manufacturer Gotion High-Tech and Volkswagen Group's battery subsidiary PowerCo are planning to invest approximately €480 million in a joint venture in Kenitra, Morocco. The project is part of a broader €3.22 billion partnership aimed at building a regional battery supply chain for the European market. The Moroccan facility will focus on producing lithium iron phosphate cathode materials, with a planned annual capacity of 100,000 metric tons.
The materials produced in Kenitra will primarily supply two battery projects that Gotion and Volkswagen are developing in Spain and Slovakia. Gotion will hold 51% of the Moroccan joint venture, while PowerCo will own the remaining 49%. The partnership includes three planned joint ventures across Morocco, Spain, and Slovakia. In Spain, Gotion plans to take a 49% stake in Volkswagen's PowerCo battery project in Valencia.
The Slovak project in Šurany will produce lithium-ion battery cells, with both European facilities planned to reach 37.5 gigawatt-hours of annual battery production capacity. Batteries produced at the two plants will prioritize Volkswagen's European demand. This project places Kenitra within a wider battery production network designed to supply Volkswagen's European operations.
The Moroccan facility will provide cathode materials for the battery projects in Spain and Slovakia, creating a supply chain that connects raw-material processing and battery manufacturing across North Africa and Europe. This project also builds on Gotion's broader investment plans in Morocco, including an integrated battery facility in the Atlantic Free Zone in Kenitra.
Gotion's integrated battery facility in Kenitra has a phased development plan that could ultimately reach 100 GWh of battery production capacity. In July, the African Development Bank approved a €100 million loan for Gotion Power Morocco to support the development of the integrated LFP battery project in the Rabat-Sale-Kenitra region. The first phase is designed to produce 10 GWh of battery cells and packs.
The new agreement expands an existing strategic relationship between Volkswagen and Gotion, with Volkswagen's Chinese investment subsidiary holding a 24.28% stake in Gotion as of September 20. Under the broader cooperation plan, Gotion intends to invest about €1.6 billion, while Volkswagen's PowerCo will contribute approximately €1.62 billion across the three projects.
The investment comes as Gotion expands its position in the global EV battery market, with data from South Korean market research firm SNE Research showing that Gotion's global EV battery installations reached 34.0 GWh during the first seven months of 2026, up 44.2% from the same period a year earlier. Gotion ranked fifth globally during the period, with its market share rising to 4.7%.
Key points
- Gotion High-Tech and Volkswagen's PowerCo plan to invest €480 million in a joint venture in Kenitra, Morocco.
- The project will produce lithium iron phosphate cathode materials with a planned annual capacity of 100,000 metric tons.
- The partnership is part of a broader €3.22 billion investment aimed at building a regional battery supply chain for the European market.
