Gotion High-Tech Co., a Chinese battery maker partly owned by Volkswagen Group, signed a deal with Robert Bosch to acquire the supplier’s factory in Gottingen, Germany.
Gotion plans to turn the plant, which produces spare parts for the automotive aftermarket, into its first battery production center in Europe, the company said this week.
The Bosch factory, established in 1960, covers a ground area of more than 170,000 square meters (1.8 million square feet) and employs about 300 people.
After closing the transaction, Gotion said it will renovate the plant and provide training for existing employees.
Gotion didn’t disclose financial terms of the deal or a schedule for launching battery production at the plant.
The Bosch factory will accelerate the Chinese battery maker's efforts to launch production in Germany.
Volkswagen Group signed an agreement in May 2020 to acquire a 26 percent stake in Gotion. The deal has been approved by Chinese regulators.
Last week, the German auto giant announced that it would collaborate with Gotion to make battery cells at a plant in Salzgitter, Germany, for electric vehicles, with output due to begin 2025.
Gotion is based in the east China city of Hefei and listed on the Shenzhen Stock Exchange.
Its annual battery cell production capacity reached 3.27 gigawatt-hours last year, accounting for 5.2 percent of China’s national output, Gotion said in its 2020 financial report.