Volkswagen to Take 49% Stake in €480 Million Moroccan Battery Materials Project
Volkswagen is preparing to make a direct entry into Morocco’s battery materials industry. Its subsidiary PowerCo wants to take a 49% stake in a planned company in Kénitra, which will produce 100,000 tonnes of LFP cathode materials a year.
The project is part of a €3.22 billion deal announced Monday, September 28, by China’s Gotion High-Tech. The two groups plan to set up three joint ventures in Morocco, Spain and Slovakia, reports Xinhua Finance.
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In Kénitra, the company would be 51% owned by Gotion and 49% by PowerCo, Volkswagen Group’s battery subsidiary. The announced investment amounts to €480 million.
The plant would have an annual capacity of 100,000 tonnes of lithium iron phosphate cathode active materials. These materials are among the key components used to manufacture LFP battery cells.
Volkswagen takes a direct stake in Moroccan project
The agreement also provides for two European joint ventures. In Sagunto, Spain, Volkswagen and Gotion plan to invest €2.26 billion in a cell plant with annual capacity of 29.1 GWh. In Šurany, Slovakia, the two partners plan to build capacity of 8.4 GWh for €480 million.
The announcement thus brings together, in a single industrial arrangement, materials production in Morocco and cell production in Europe. It does not yet specify the volumes that will flow between the three sites.
The cathode project should be distinguished from the gigafactory already being developed by Gotion in Kénitra. The new deal concerns a joint venture with PowerCo, in which Volkswagen would become a direct shareholder.
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The investment agreements still need to be signed. The deal is also subject to a vote by Gotion shareholders and the necessary regulatory approvals in China and the countries involved.
