Construction of the plant will commence this year, with completion expected by 2026.
Marian Bocek, Co-founder and CEO of InoBat, mentioned that the companies are finalizing the plant’s location, considering several European countries.
The factory will have an initial production capacity of 20 gigawatt-hours (GWh), with the possibility of gradual expansion, according to Bocek.
This announcement follows the recent news that Gotion was acquiring a 25% stake in InoBat, providing technological and supply chain support to the startup as it ramps up EV battery production.
Gotion’s main shareholder is Volkswagen, as the company holds an “exclusive contract with Volkswagen to supply EV batteries outside of China.” Gotion is also building a $2.36 billion battery plant in Michigan and a $2 billion facility in Illinois.
Other Battery Projects in Europe
Europe’s efforts to establish its own EV battery industry and reduce dependence on major Asian manufacturers have attracted limited ongoing investments, as funding for startups has dwindled amid high-interest rates and economic uncertainty.
Last month, Swedish lithium-ion battery producer Northvolt, serving customers like Volkswagen and Volvo Cars, announced raising $1.2 billion in investments.
In the same vein, last week, French battery startup Verkor secured over €2 billion (approximately $2.13 billion) in funding to construct a gigafactory in Dunkirk.
InoBat currently operates a pilot battery production line in Slovakia and has also signed memoranda of understanding with the governments of Spain and Serbia to build EV battery plants.