Gotion High-tech, the Volkswagen-backed Chinese power battery giant, reported strong first-quarter results and revealed more about the company's plans to build a battery plant in the US.

Gotion reported first-quarter revenue of RMB 7.18 billion yuan, up 83.16 percent from a year earlier, despite a 16.8 percent decrease from the fourth quarter.

The company reported a net profit of RMB 75.61 million in the first quarter, up 134.81 percent from a year earlier, but down 53.04 percent from the fourth quarter last year.

China's first quarter NEV sales were 1.32 million units, up 23.72 percent year-on-year, but down 26.62 percent from the fourth quarter of last year. Gotion, China's fourth-largest power battery manufacturer, saw its performance reflect these seasonal trends.

In March, Gotion installed 1.25 GWh of power batteries in China, ranking fourth with a 4.51 percent share. Gotion aims to exceed 300 GWh of capacity by 2025. Gotion announced its annual report, which showed it had revenue of RMB 23.05 billion in 2022, up 122.59 percent year-on-year.

Gotion's revenue in overseas markets in 2022 was RMB 2.98 billion, up 464.76 percent year-on-year. The company's profit in 2022 was RMB 199 million, up 408.87 percent year-on-year.

Gotion is conducting an in-depth exploration of building a battery factory in the US, and the site is now close to being determined. The company is well on its way to building a plant in the US as an early move to capture the explosive growth opportunities in the US and Europe in 2025-2027.

Gotion is currently selling batteries to US customers through exports, with sales expected to be $500 million this year.

Gotion chairman Li Zhen said at the media event Friday that the battery materials plant is sited in Michigan partly because of the relatively inexpensive supply of hydroelectric power in the area.

Gotion has been in contact with the local government for about two years, and final approval for the plant is pending.