Following the equity agreement signed in May 2020, Chinese power cell supplier Gotion High-tech signed a new agreement with Volkswagen (VW) on July 12 to develop the first generation of unified cells for the latter's regular mass-production models.

According to the agreement, Gotion will work with VW to optimize the production layout, equipment deployment, and production processes at VW's Salzgitter plant in order to accelerate the industrial production of cells.

(Source: Gotion High-tech)

Gotion will develop the first battery application with standard cells for VW's regular production models.

Gotion is in the midst of VW's supplier certification process in China, which will allow it to supply cells to the local MEB modular electric drive platform products, the company said.

VW will work with Gotion to establish a new battery production center as it gradually transforms its traditional engine plant in Salzgitter.

In March, VW presented its battery and charging technology roadmap at the Power Day event, which envisions lower battery costs and simplified production processes.

VW's standard battery cell is a square cell, also debuted at this year's Power Day.

The cell manufacturing solution, which can be adapted to a wide range of chemistries, will be highly compatible with the corresponding production and product technologies, both today and in the future, resulting in a significant reduction in overall costs.

The solution is scheduled to enter the product introduction phase in 2023 and will cover 80 percent of the Volkswagen Group's electric vehicle models by 2030.

In May 2020, the two companies signed an equity cooperation agreement in which VW China invested approximately €1.1 billion to acquire a 26 percent stake in Gotion and become its majority shareholder.

The investment deal was approved by the China Securities Regulatory Commission, making VW the first foreign automotive company to invest directly in a Chinese battery manufacturer.

Gotion is the No. 5 power battery supplier in China, with an installed base of 2.76 GWh and a 5.3 percent market share from January to June this year, according to the China Automotive Battery Innovation Alliance.

The top-ranked had 25.76 GWh of power batteries installed in the same period, with a 49.1 percent market share.

(Source: China Automotive Battery Innovation Alliance)