Chinese battery manufacturer Gotion High-Tech is in advanced talks with the Volkswagen Group to take control of the battery gigafactory that PowerCo is developing in Sagunto (Valencia), according to local media citing industry sources.
According to both reports, negotiations have been underway for several months and revolve around the creation of a joint venture in which Gotion would have a majority stake, while PowerCo would retain a minority position in a facility considered strategic for the supply of the Seat Martorell , Volkswagen Navarra and Volkswagen Palmela plants.
The publications indicate that high-level executives from Gotion, including its CEO Zhen Li , have already visited the Valencia plant and held technical meetings with project managers to assess the feasibility of the operation.
PowerCo does not confirm the negotiation
When contacted by both media outlets, PowerCo declined to confirm the talks.
The company stated that it "periodically evaluates strategic opportunities, including potential collaborations with partners," although it added that "we do not comment on market rumors."
At the same time, he assured that he maintains his commitment to the Sagunto gigafactory and that he continues to execute the project.
A partner with strong ties to Volkswagen
The possibility of incorporating Gotion is not unrelated to the German group's strategy.
Volkswagen is the main shareholder of the Chinese manufacturer, with approximately 25% of the capital , and both companies maintain a close collaboration in the development and supply of cells for electric vehicles.
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Currently, Gotion already supplies cells produced in China for Volkswagen Group electric models manufactured in Spain, while the Sagunto plant continues under construction.
According to published reports, the eventual entry of the Asian manufacturer would not change the role of the gigafactory as a supplier to the group's Iberian plants, although it could open the door to supplying batteries to other manufacturers located in Spain, including Ford Almussafes .
The negotiations coincide with further delays
The talks come at a particularly delicate time for the Valencian project.
In recent weeks there have been various changes and delays in the execution of the plant.
These include the replacement of the CEO of PowerCo Spain, the postponement of the start of production until the end of the year and the review of several industrial contracts, including the situation of the South Korean contractor K-Ensol , responsible for the clean and dry rooms of the factory, according to information published by Levante-EMV .
Gotion's presence is also growing in Spain
The potential operation in Sagunto would coincide with the industrial expansion of the Chinese group in Spain.
Gotion recently announced a project in Valladolid focused on the production of materials for batteries and recycling, backed by PERTE VEC funding, with a planned investment of over 940 million euros in its first phase.
If the entry into PowerCo Sagunto is confirmed, the Chinese manufacturer would consolidate a dual industrial presence in Spain, reinforcing its position within the European battery supply chain.
Important: All information regarding the negotiations comes from sources cited by La Tribuna de Automoción and Levante-EMV . To date, PowerCo has not officially confirmed the existence of the deal and has only stated that it routinely analyzes potential strategic alliances.