Volkswagen Group and Gotion High-Tech Ltd, a Chinese battery producer, have announced their intentions to deepen their existing partnership.

In May 2020, the German automaker entered a strategic cooperation framework with Gotion. The goals of both partners were to industrialise battery cell production at Volkswagen's Salzgitter production site, and to develop Volkswagen's 'unified cell' concept, which will be used on 80% of future Volkswagen Group vehicles.  

Both projects are part of Volkswagen's overarching plan to significantly reduce battery complexity and costs while boosting range and charging performance, making electrified mobility more attractive.

In addition, a new battery production cell hub will be built in partnership with Gotion High-Tech at the Salzgitter site. A group-wide centre of excellence with extensive cell laboratories, manufacturing lines for cell production, and a battery recycling facility will pave the way for the start of production by 2025.

The Volkswagen Group also plans to establish six megafactories in Europe with a total production capacity of 240GWh. This will secure battery cell supply and achieve large economies of scale for future production innovations. The agreement makes Volkswagen the first global automaker to invest directly in a Chinese battery supplier.

Gotion High-Tech is in the process of becoming a certified Volkswagen Group battery supplier in China, including supplies for Volkswagen vehicles manufactured on the MEB platform.