Volkswagen takes stake in Morocco cathode materials plant to supply European battery production
Volkswagen will take a 49% stake in an industrial project in Kénitra alongside Gotion. The Moroccan site will not produce battery cells; it will supply LFP cathode materials for the German group’s European production chain.
The agreement announced on Monday, September 28, by Volkswagen provides for the creation of three joint ventures in Morocco, Spain and Slovakia. Each will play a different role in the production of lithium iron phosphate batteries.
On Bladi.net : Volkswagen to Take 49% Stake in €480 Million Moroccan Battery Materials Project
In Kénitra, Gotion will hold 51% of the future company, with PowerCo, Volkswagen’s battery subsidiary, holding the remaining 49%. Their plant will produce active cathode materials, one of the essential components of LFP cells.
The distinction is important: the Moroccan site will manufacture neither cells nor finished batteries. The materials produced in Kénitra will need to be combined with an anode, an electrolyte and other components to form a cell, which will then be assembled into a module and finally a pack.
Cell production is reserved for the two European sites. In Valence, PowerCo will retain 51% of a joint venture set to become a major European LFP production hub. In Šurany, Slovakia, Gotion will control 51% of a plant supplying the electric vehicle industry and stationary storage systems.
Kénitra upstream of European plants
Morocco will thus be positioned at the start of Volkswagen’s European industrial supply chain. The automaker wants to diversify its sources of cathode materials, secure its supplies and reduce its dependence on Asian producers.
The stakes are significant: Volkswagen estimates that LFP batteries’ share of the European market could rise from around 10% today to 40-60% by 2030. This technology, which is less expensive and considered robust, is particularly well suited to mass-market electric cars.
The financial arrangements also need to be clarified. PowerCo will contribute about 470 million euros in total to the Kénitra and Šurany projects by 2030 to acquire 49% of each company. Volkswagen has not specified what share of that sum will go to Morocco. Gotion will meanwhile invest about 1.1 billion euros to take a 49% stake in the Valence site. The entire arrangement remains subject to regulatory approvals and approval by Gotion’s shareholders.
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This cathode materials plant should not be confused with the gigafactory already being developed by Gotion in Kénitra. That complex is intended to manufacture LFP cells and packs and will benefit from a dedicated rail connection. Volkswagen is therefore entering a separate Moroccan project, directly linked to supplying its future European plants.
