Volkswagen and its partner Gotion are in advanced talks about a possible stake for the Chinese company in the German carmaker's battery plant in Valencia, Spanish trade publication La Tribuna de Automocion reported on Monday. The process has involved high-level visits from the Chinese battery manufacturer's CEO, Li Zhen, to evaluate the operation, the report said, citing industry sources. Volkswagen's upstart battery business PowerCo operates the plant, which is expected to begin production at the end of the year and gradually scale up. PowerCo declined to comment on the report in an emailed statement to Reuters. "PowerCo regularly evaluates strategic opportunities, including potential collaborations with partners," the statement said. Gotion had no immediate comment when contacted outside business hours. Volkswagen created PowerCo to build its own battery business in Europe, reducing reliance on Asian manufacturers as it seeks to catch up with EV rivals such as BYD and Tesla . Under pressure to cut costs, the company has also pledged to streamline its sprawling investment portfolio and scale back car production in Europe. The report said Gotion could take a majority stake in a joint venture for the Valencia site. A PowerCo spokesperson said the company had no plan to cede control of the site.
