Volkswagen in Advanced Talks to Hand Majority Control of Sagunto Gigafactory to Gotion

PowerCo's denial:
PowerCo has publicly rejected that it plans to cede control. A spokesperson told Europa Press that PowerCo "has no intention of ceding control" of the Sagunto gigafactory . In a separate statement to Reuters, PowerCo said it "regularly evaluates strategic opportunities, including potential collaborations with partners" but declined further comment . Volkswagen itself had no immediate comment .

The bottom line: there is a clear conflict between the trade report (which describes a majority-control JV) and PowerCo's official denial. The talks appear real, but the outcome — especially on control — is unresolved.

Strategic importance of Sagunto to VW

Sagunto is VW's second battery cell gigafactory globally (after Salzgitter in Germany) and a cornerstone of VW's €10 billion "Future: Fast Forward" investment program in Spain . It is expected to start series production in July 2027 with an initial capacity of 20 GWh, supplying VW's Spanish plants (SEAT in Martorell and Pamplona) for its electric vehicle push . Handing majority control to a Chinese partner would be a major strategic shift for a project that is central to VW's European electrification plans.

Existing partnership: VW's 26% stake in Gotion

Volkswagen and Gotion have been strategic partners since May 2020, when VW invested approximately €1.1 billion to acquire a 26.47% stake in Gotion High-Tech, making VW the largest single shareholder . Gotion already supplies batteries for VW's Chinese EV production and is mass-producing VW's standard cells . The Sagunto talks would deepen that relationship into European manufacturing.

Gotion's separate Valladolid investment

Separate from the Sagunto negotiations, Gotion has its own direct investment in Spain:

• €950 million total investment for two facilities on a 12-hectare site in Valladolid .
• One plant will produce cathode active materials; the other will be a battery recycling facility .
• Construction is planned to start in 2027 .
• Under Spain's Perte VEC (electric vehicle) funding program, Gotion was provisionally awarded €92 million in May 2026 for these projects . (The figure of €138 million in grants sometimes cited is not supported by the current sources.)

Summary