Volkswagen Group has been approved by the board of directors on the acquisition of GOTION High-Tech‘s equity, reports Iccsino.com.
Volkswagen’s acquisition of GOTION High-Tech ’s shares would increase 30%, and the value became 740 million USD. After the completion of the acquisition, Volkswagen will become GOTION High-Tech ’s largest shareholder. However, GOTION has not officially responded yet.
Volkswagen CEO stated earlier: “We plan to deliver 22 million BEV worldwide by 2028, more than half of which will be manufactured in China.” He also mentioned that annual sales of electric vehicles in China will reach 1.5 million units by 2020, and the demand for vehicle batteries will reach 75GWh.Therefore, owning a battery factory in China has become a key part of Volkswagen ’s electrification strategy.
GOTION High-Tech was established 2006, mainly engaged in new energy vehicles, lithium ion batteries and other related businesses. Successfully listed in April 2015, GOTION currently has multiple production bases in China. GOTION ranked 3rd in China’s vehicle battery installed volume with 3.22GWh, in which LFP accounted for 94.09%. GOTION is currently focusing on LFP batteries. Its cylindrical LFP cells have a single energy density of 180wh/kg, which has a leading position in Chinese lithium ion market.
As Volkswagen’s competitor, Tesla would install LFP + CTP (cell to pack without module) batteries supplied by CATL in Chinese-made Model 3 for cost efficiency and safety performance. After Volkswagen acquire GOTION’s 30% share, and GOTION mainly focuses on LFP battery, Iccsino.com does not rule out the possibility that Volkswagen would install LFP batteries in EV in the long run.