Volkswagen is in advanced negotiations with its Chinese joint-venture partner Gotion High-Tech to transfer ownership of its battery manufacturing plant in Valencia, Spain.
The development was first reported by the Spanish trade publication La Tribuna de Automoción on Monday, indicating that discussions have progressed beyond preliminary stages.
The potential sale represents a significant shift in Volkswagen’s European battery strategy.
By offloading the Valencia asset to Gotion, the German automaker may be moving to streamline its capital expenditure while deepening its reliance on Chinese battery technology.
This aligns with broader internal debates at Volkswagen regarding whether to source core electric vehicle components from China rather than maintaining independent development hubs in Germany.
The move comes as Volkswagen executes a major strategic overhaul aimed at reducing costs and improving competitiveness.