Investing.com — Volkswagen and its partner Gotion are in advanced discussions about a possible stake for the Chinese company in the German automaker’s battery plant in Valencia, Spain, according to a report from Spanish trade publication La Tribuna de Automocion on Monday. <\/p>\n
The discussions have included high-level visits from Gotion CEO Li Zhen to assess the operation, the publication reported, citing industry sources. <\/p>\n
The Valencia facility is operated by PowerCo, Volkswagen’s battery business unit. The plant is expected to start production at the end of the year and gradually increase its output. <\/p>\n
“PowerCo regularly evaluates strategic opportunities, including potential collaborations with partners,” the company told Reuters in an emailed statement. <\/p>\n
Volkswagen established PowerCo to develop its own battery manufacturing capabilities in Europe, aiming to reduce dependence on Asian suppliers as it competes with electric vehicle manufacturers such as BYD and Tesla. <\/p>\n
The German automaker is working to reduce costs and has committed to streamlining its investment portfolio and reducing car production in Europe. <\/p>\n
According to the report, Gotion could acquire a majority stake in a joint venture for the Valencia location. <\/p>\n
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