Chinese battery manufacturer Gotion High-Tech has been provisionally awarded 92 million euros ($104 million) under Spain’s PERTE VEC electric mobility funding programme to support two battery-related projects in Valladolid, according to details released on the initiative.
The projects include plans for a battery cathode manufacturing facility and a battery recycling plant, forming part of the company’s broader strategy to strengthen its battery supply chain presence in Europe and North Africa.
Spain’s PERTE VEC programme has previously provided funding support to major automotive groups including Seat, Stellantis and PowerCo, with grants amounting to hundreds of millions of euros aimed at accelerating electric vehicle and battery investments.
The Valladolid projects were initially linked to Slovak battery company InoBat. However, the initiative later came under the control of Gotion after the Chinese company acquired a stake in InoBat.
Gotion’s largest shareholder is Volkswagen, and the battery maker has been collaborating with the German carmaker on the development and industrialisation of Volkswagen’s Unified Cell battery technology.
According to project details, Gotion plans a combined investment of approximately 944.3 million euros for the two facilities in Valladolid, located in northwestern Valladolid.
The recycling facility is expected to process used battery materials and recover so-called “black mass,” which contains valuable materials that can be reused in the production of new battery cells.
The Spanish projects are also intended to complement Gotion’s planned battery cell factory in Morocco, where the company aims to establish a plant with an annual production capacity of 20 gigawatt-hours.
The investment reflects growing efforts by battery manufacturers and automakers to localise battery material processing and recycling capacity closer to electric vehicle production hubs in Europe and neighboring regions.