Shanghai (ZXZC)- Gotion High-Tech, China's No.3 battery maker, once again clarified the rumor saying the German automobile giant Volkswagen Group is set to become one of its main shareholders.

A local media outlet reported one April 21 that Volkswagen Group attempts to become the biggest shareholder of the Hefei-based battery manufacturer by acquiring no more than 30% shares in the latter at $740 million (around RMB 5.24 billion) through a private placement, and receiving shares transferred by equity holders.

After the news went viral through social media, Shenzhen Stock Exchange swiftly issued an attention letter, requiring Gotion High-Tech to verify the information and offer clarification if the news is fake.

(Photo source: Gotion High-Tech)

The company replied next day that its board of directors has not received any proposals related to the rumored transaction, or done any deliberation. Besides, the board has not been informed of the approval made by Volkswagen's board of management or the transfer of shares and de facto control agreed by its controlling shareholder and the actual controller Li Zhen.

Meanwhile, Gotion High-Tech stated that it is discussing with Volkswagen Group the possible strategic cooperation in technologies, products and capital, etc. However, both parties have not reached any consensus on the method, contents and prices about the cooperation, or signed any substantive binding agreements.

Reuter reported in January that Volkwagen Group was ready to take a 20% stake in Gotion High-Tech as the German firm accelerated its electric push into China. The Chinese battery maker afterwards offered its first-time denial.

The Wolfsburg-based automaker strives to meet a target of selling 1.5 million new energy vehicles (NEVs) a year in China by 2025, including plug-in hybrid cars, which accordingly needs 75GWh of battery supply.

As a major Chinese battery provider only followed by CATL and BYD, Gotion High-Tech presently possesses a combined battery capacity of 10GWh per year at factories in cities like Qingdao, Hefei, Tangshan and Nanjing. It is ambitious to raise the total capacity to 30GWh by 2020 and to 50GWh by 2022.