Volkswagen’s Chinese battery partner Gotion High-Tech is planning to invest CNY12 ($1.844bn) to build battery recycling and raw material production facilities for lithium-ion batteries in the Chinese city of Hefei, as per local media reports.
Lithium-ion batteries are mainly used in electric vehicles (EV). The company has signed an agreement for the same with the local government of Feidong County, Hefei to create a power battery industrial chain. Hefei is located nearly 450km west of Shanghai and has a good demand for electric vehicles.
The project is slated to be completed within 24 months after the construction begins. It is expected to increase the company’s battery production capacity. The company said that it aims to build up a full-fledged lithium power battery industrial chain.
The project will improve its control over products and their upstream raw materials required for lithium-ion batteries, as well as costs, the company said. The company is yet to disclose further information regarding the project like capacity, sites, etc.