Gotion High-tech, Volkswagen Partner to Industrialize Battery Cell Production

Gotion High-tech and Volkswagen Group reached a strategic cooperation framework agreement. The goal of both partners is to industrialize the planned battery cell production at the Salzgitter site of Volkswagen Group Components, and Gotion will provide corresponding technical support.

According to the agreement, both sides will team up for fast cell industrialization at the Volkswagen-owned Salzgitter plant with Gotion High-Tech acting as technology partner for the cell factory layout, machinery, production processes. A new battery production cell hub will be built on the solid basis of an existing Volkswagen-owned Center of Excellence Battery Cell, which includes extensive cell laboratories, a pilot line for cell production and a pilot plant for battery recycling.

In the Chinese market, Hefei Gotion, the sole subsidiary of Gotion High-Tech, has also reached an agreement with Volkswagen Group (China) to develop the 1^st generation of unified cells for the volume segment. It means Gotion has become the first developer to be awarded this development contract.

Both projects about the battery plant construction and cell development with Gotion High-Tech are part of the overarching plan of Volkswagen Group ‒ outlined at the Power Day event in March ‒ to significantly reduce battery complexity and cost while boosting range and charging performance in order to make the electric car more attractive. Also in this Event, Volkswagen Group announced to establish six gigafactories with a total production capacity of 240 GWh together in Europe with partners.

The Volkswagen unified cell concept refers to a prismatic cell format adaptable to various chemistry mixes available today or market-ready at a later point and is compatible to all major upcoming innovations on both products and process.

In addition, Gotion High-Tech will also become a certified supplier for Volkswagen Group in China, supplying batteries to the Group's MEB modular electric drive platform products in the future.

Dr. Herbert Diess, Chairman of the Board of Management of Volkswagen AG :"We are excited to extend our partnership with Gotion High-tech as an established high level battery company to drive forward cell tech together. This is only one step towards our aim to become, together with partners, one of the top three battery cell manufacturers worldwide."

Thomas Schmall, Group Board Member for Technology and CEO of Volkswagen Group Components: "Gotion High-Tech is an accomplished cell producer recognized for innovative quality work. I look forward to scaling up battery tech together, starting in Salzgitter. With this, we make the central customer-relevant car component even better and e-mobility still more affordable."

Mr. Zhen LI, Chairman and CEO of Gotion High-Tech states :"With our cutting-edge battery technology and rich experiences in battery manufacturing, Gotion High-Tech will fully support Volkswagen Group's electrification strategy and together promote the carbon neutral transition by 2050 to completely change human society's dependence on fossil energy."