Rabat – Chinese battery manufacturer Gotion High-Tech and Volkswagen Group’s battery subsidiary PowerCo plan to invest about €480 million ($547 million) in a joint venture in Kenitra, Morocco, as part of a broader €3.22 billion partnership aimed at building a regional battery supply chain for the European market.
The Moroccan project will focus on the production of lithium iron phosphate (LFP) cathode materials, with a planned annual capacity of 100,000 metric tons. The materials 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 Kenitra investment forms part of 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, while the Slovak project in Šurany will produce lithium-ion battery cells.
Together, the two European facilities are planned to reach 37.5 gigawatt-hours (GWh) of annual battery production capacity. Batteries produced at the two plants will prioritize Volkswagen’s European demand.
Morocco at the center of Europe-bound battery supply chain
The partnership 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.
The project also builds on Gotion’s broader investment plans in Morocco. The Chinese manufacturer is developing an integrated battery facility in the Atlantic Free Zone in Kenitra, with a phased development plan that could ultimately reach 100 GWh of battery production capacity.
In July, the African Development Bank (AfDB) 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, with plans for further expansion. The project also includes production of cathode materials, with a planned annual capacity of 100,000 metric tons.
The investment adds to Morocco’s growing electric-vehicle manufacturing ecosystem, which has attracted international companies seeking production bases close to the European market.
Volkswagen deepens ties with Gotion
The new agreement expands an existing strategic relationship between Volkswagen and Gotion.
Volkswagen’s Chinese investment subsidiary held a 24.28% stake in Gotion as of September 20, making it the battery manufacturer’s largest shareholder at the time.
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. Funding will be provided in stages.
Gotion said the partnership will allow it to participate in the development of Volkswagen’s European battery production network, while PowerCo will take stakes in Gotion’s battery and materials projects in Europe and Africa.
The companies have yet to sign the final investment agreement. The projects remain subject to shareholder approval and regulatory clearances in China and the countries concerned.
Gotion also cautioned that financing, regulatory approvals and market conditions could affect construction schedules and expected returns.
The investment comes as Gotion expands its position in the global EV battery market. Data from South Korean market research firm SNE Research showed 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%, compared with 3.9% a year earlier.
