Chinese battery manufacturer Gotion High-Tech has officially launched plans for a major battery materials complex in Valladolid, Spain, committing approximately €950 million to establish a cathode materials production facility alongside a large-scale battery recycling plant.
The investment, unveiled in cooperation with Spain’s Ministry of Industry, will be backed by €138 million in grants under the country’s Strategic Project for Economic Recovery and Transformation (PERTE) programme.
Two-Phase Battery Materials Project
Construction of the industrial complex is scheduled to begin in 2027 on a 12-hectare site near Valladolid.
The first phase will focus on building a battery recycling facility capable of processing up to 200,000 tonnes of battery materials annually.
Once operational, the second phase will add a cathode materials plant with annual production capacity of 200,000 tonnes, supplying key components for electric vehicle batteries.
Gotion has not yet disclosed the timetable for completing either phase but confirmed both facilities will operate as part of its broader international battery manufacturing strategy.
Supporting a Regional Battery Supply Chain
The Spanish facilities are expected to complement Gotion’s planned 20GWh battery cell factory in Morocco, creating an integrated supply chain spanning battery recycling, cathode production and cell manufacturing.
According to the company, the recycling and cathode plants will strengthen Europe’s battery ecosystem while improving access to critical battery materials.
The project represents one of Spain’s largest recent investments in battery materials manufacturing and expands the country’s growing role within Europe’s electric vehicle supply chain.
Government Support
Spain’s PERTE funding programme will provide €138 million in financial support for the project, an increase from earlier funding estimates announced in May.
The programme has previously supported major automotive investments from companies including Seat, Stellantis and Volkswagen’s battery subsidiary PowerCo.
Spanish Transport Minister Óscar Puente said the new facilities would introduce advanced battery manufacturing capabilities to Europe.
“Gotion aims to bring the plants online very soon. The cathode material plant will be unique in the European Union, and the recycling facility will also feature technological components that set it apart from others.”
Puente also said the government expects Gotion to continue expanding its investment in Spain.
“The Ministry is firmly convinced that Gotion will continue its investments until the total in Spain reaches €5 billion.”
Expansion Beyond the Initial Investment
The Valladolid project was originally associated with Slovak battery manufacturer InoBat before Gotion assumed responsibility after InoBat was unable to provide the guarantees required by Spanish authorities.
Gotion, which is a shareholder in InoBat and whose largest shareholder is Volkswagen, now plans to use the Valladolid complex as a cornerstone of a broader European battery manufacturing network that could eventually represent investments of up to €5 billion across the region.
Source: forococheselectricos.com, eleconomista.es, elpais.com, mintur.gob.es
