Volkswagen Group and Gotion High-tech have announced a significant expansion of their manufacturing footprint to meet the growing global demand for electric vehicle (EV) batteries. The companies plan to invest a combined €3.22 billion (approximately US$3.66 billion) to establish three new production lines. These facilities will be located in Europe and North Africa, marking a strategic move to secure supply chains closer to key automotive markets.

The project is designed to deliver a total capacity of 37.5 gigawatt hours (GWh) of lithium-ion batteries. Additionally, the investment includes the production of 100,000 metric tons of cathode material, a critical component in battery manufacturing. This collaboration leverages Gotion High-tech’s position as China’s fourth-largest EV battery maker and Volkswagen’s established manufacturing infrastructure to scale up production capabilities. The move reflects a broader industry trend of automakers seeking direct partnerships with battery suppliers to mitigate supply chain risks and reduce costs associated with the transition to electric mobility.