Gotion High-Tech Co., a Chinese battery maker partly owned by Volkswagen Group, plans to make new-generation battery cells in Germany and China to support the German auto giant’s shift to EVs.
Under an agreement signed this week, the two companies will jointly produce battery cells in Salzgitter, Germany, and develop initial use cases of VW Group’s “unified cells” for volume EVs.
Unified cells refer to a prismatic cell format adaptable to various chemistry mixes that are available today or will become market-ready at a later stage, VW Group noted.
The cell factory in Salzgitter is slated to begin output in 2025.
Gotion, based in Hefei -- the provincial capital of east China’s Anhui province -- will also develop a first generation of unified cells for VW Group in China, according to the agreement.
VW Group inked a deal in May 2020 to acquire 26 percent in Gotion for 1.1 billion euros ($1.3 billion). The deal has cleared regulatory oversight in China.
Gotion is undergoing certification to become a battery cell supplier for EVs that VW produces in China, including products based on VW Group’s modular EV platform known as MEB, VW Group said.
The expanding ties and collaboration with Gotion will not affect its ongoing contracts with other battery suppliers in and outside of China, the German group added.