Gotion to supply VW with batteries outside of China

The Chinese battery cell manufacturer Gotion High-Tech will in future also supply Volkswagen with LFP cells outside China. The order, the size of which is not yet known, includes unit cells with LFP chemistry and the same specifications as in China. One possible model could be the ID.2.

In 2021, it was announced that a Gotion subsidiary is building a battery factory in the city of Hefei in Anhui province to build LFP cells in Volkswagen’s unit cell format. Hefei is also the headquarters of Volkswagen Anhui, the former joint venture with JAC. Anhui is also where MEB electric cars are built, including the Cupra Tavascan for Europe and the rest of the world.

According to a stock exchange release, that same Gotion subsidiary, called Hefei Gotion High-tech Power Energy Co Ltd, recently received a procurement order from Volkswagen that, according to the Chinese media reports, “makes the company a designated supplier for the automaker’s overseas markets”. However, agreed purchase quantities and delivery periods are not known. In said stock exchange release, Gotion announced rather matter-of-factly that the deal would “not significantly affect” business development this year, but it would “have a significant and positive impact in the future”.

As CN EV Post writes, the construction of the main assembly and auxiliary buildings of the battery factory in Hefei is almost completed. Production is expected to start in the second half of this year. According to earlier information, the first phase will be 10 GWh, before doubling to 20 GWh in the second phase.

VW unveiled the unit cell in March 2021 as part of its ‘Power Day’. It is a prismatic battery cell which, with its uniform format, is to be used in 80 per cent of all the group’s electric cars by 2030. In order to meet the different requirements of the vehicle segments, the unit cell can be equipped with different cell chemistries: for example, LFP cells for small vehicles, NCM cathodes with a high nickel content for premium models and even solid-state batteries are to be possible.

The reports do not mention in which vehicles outside China the LFP cells from Gotion will be used. One possibility would be the four MEB small models that VW will produce in Spain – two electric small cars and two small electric SUVs. Around the premiere of the ID.2all concept, VW indirectly confirmed that the ID.2 in the variant for a range of around 450 kilometres will probably be fitted with an NMC battery – in the basic model for the entry-level price of 25,000 euros, however, an LFP battery is to be installed.

The LFP cells for this could therefore come from China’s partner Gotion – but this has not been confirmed. Such technical details are not yet known about the other three electric cars to be built in Spain. However, it would be obvious that the Cupra Raval e-car (like the ID.2 from Martorell) and the two electric SUVs from the Pamplona plant (VW ID.2 X and Skoda Elroq) will have the same battery variants as the ID.2.

Volkswagen has been the largest single shareholder in Gotion High-Tech since the end of 2021. With the order now announced, VW is likely to make some profits of its own: According to Yicai Global, shares in Gotion High-Tech jumped after the announcement, closing up 4.7 per cent.


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