Volkswagen Group and its Chinese partner Gotion High-tech have stepped up a gear in tapping global demand for electric vehicle (EV) batteries with plans to invest a combined €3.22 billion (US$3.66 billion) to set up three production lines in Europe and North Africa.
The factories, to be jointly owned by the German marque and China’s fourth-largest EV battery maker, would be capable of delivering 37.5 gigawatt hours (GWh) of lithium-ion battery capacity and 100,000 metric tons of cathode materials a year, Gotion said in an exchange filing on Monday.
The signings were “in line with Gotion’s overseas expansion strategy to consolidate our footprint in the global EV battery market while further deepening our long-term strategic partnership with Volkswagen”, the company said.