High-tech have agreed to deepen their strategic partnership and jointly accelerate the development of a regional battery supply chain for Europe. Building on their cooperation since 2020, the partners agreed on establishing three joint ventures at the Valencia (Spain), Šurany (Slovak Republic) and Kenitra (Morocco) sites for the industrial production of LFP battery cells and cathode material. The agreement also covers joint procurement and sales activities in Europe. Separately, Volkswagen Group has announced that it has entered into definitive agreements to sell 5.3 % equity stake in Gotion to optimize equity structures and support long-term strategic synergies. Upon completion of the transaction, Volkswagen will continue to hold a significant stake in Gotion.
LFP batteries offer competitive costs, a long service life and high levels of robustness, making them a key technology for affordable electric mobility in the volume segment. Demand in Europe is expected to grow strongly in the coming years: According to forecasts, LFP’s market share could rise from around 10 percent today to between 40 and 60 percent by 2030. At the same time, Europe currently has no relevant LFP battery production capacity.
The partnership with Gotion strengthens Europe’s position in the global LFP battery market. Together, the partners will expand regional LFP battery production, diversify sources of supply for key cathode active materials, and thereby strengthen supply security and the competitiveness of the European battery industry.
