Volkswagen sells 5.3% Gotion stake, deepens Europe battery ties

(Adds details from statement throughout, executive quote) BERLIN, Sept 28 (Reuters) — China's Gotion will invest €1.1 billion ($1.25 billion) in Volkswagen's battery plant in Valencia, Spain, becoming a major investor in the site under a broader plan to jointly develop a European battery supply chain. Volkswagen on Monday said it would sell a 5.3% equity stake in the Chinese battery maker, after which it would "continue to hold a significant stake in Gotion", the German carmaker said in a statement. Gotion had previously announced that it would set up a series of joint ventures with Volkswagen. The company will take a 49% stake in the Valencia plant of Volkswagen's battery business PowerCo, which will remain majority shareholder in the site, Volkswagen said, adding that it would become a European production hub for lithium iron phosphate battery, or LFP, batteries. The companies will also partner at Gotion's cell factory in Surany, Slovakia and build a new plant in Kenitra in Morocco. Both will be jointly managed by Gotion and PowerCo, with the Chinese partner retaining a 51% stake. Volkswagen technology chief Thomas Schmall hailed the expansion of the company's long-standing partnership with Gotion. "This marks a major breakthrough for both companies and brings us one step closer to the forefront of electric mobility," Schmall said. ($1 = 0.8800 euros) (Reporting by Rachel More, editing by Thomas Seythal) ((rachel.more@thomsonreuters.com;)