Volkswagen and Chinese battery maker Gotion High-tech plan to invest €3.22 billion ($3.66 billion) in three joint ventures across Spain, Slovakia and Morocco, building a regional supply chain for the European market. Gotion will contribute about €1.598 billion. The Valencia and Surany projects will produce battery cells, with planned annual capacities of 29.1 gigawatt-hours and 8.4 gigawatt-hours, respectively. The Kenitra facility will produce 100,000 metric tons of lithium iron phosphate (LFP) cathode materials annually, primarily for the two European plants. Volkswagen battery subsidiary PowerCo will hold 51% of the Spanish venture, while Gotion will own 51% of the Slovak and Moroccan ventures. The investments will be made in stages and remain subject to regulatory approvals, other closing conditions and approval by Gotion shareholders. Volkswagen technology chief Thomas Schmall called the partnership a major breakthrough, while Volkswagen said it would diversify cathode-material supplies and improve Europe’s battery-industry competitiveness.