PowerCo and Umicore establish joint venture for European battery materials production (from left to right: Thomas Schmall, Group Board Member for Technology at Volkswagen AG and Chairman of the Supervisory Board of PowerCo SE, Jörg Teichmann, PowerCo Chief Procurement Officer, Ralph Kiessling, EVP Energy & Surface Technologies at Umicore, Umicore CEO Mathias Miedreich)

PowerCo/Umicore joint venture: green light for battery materials production in the EU

PowerCo, the Volkswagen Group’s new battery company, and Belgian materials technology group Umicore have received all regulatory approvals for their joint venture announced in September 2022. The partners can now quickly start preparations for large-scale industrial production of cathode materials (CAM) and precursor materials (PCAM) in Europe.

Cathode material is the most important technological lever for battery performance and the largest single factor in total battery cost. Thus, CAM has a strategically central importance for battery value creation and for a successful energy transition towards e-mobility. From 2025, the joint venture between PowerCo and Umicore will supply PowerCo’s European battery cell factories with key materials for production. The joint venture, based in Brussels, will cover a large part of PowerCo’s EU demand – Umicore will gain secured access to an important part of the European demand for cathode materials for e-vehicles. The joint venture is thus on schedule to produce CAM and PCAM for 160 gigawatt hours of cell capacity per year by the end of the decade. This corresponds to an annual production capacity sufficient for around 2.2 million fully electric vehicles. Both partners are thus making an important contribution to the green mobility transition and the further development of a local, sustainable and fully integrated European battery supply chain. The search for a production site has not yet been completed. The location and name of the joint venture will be announced in due course. www.volkswagen-newsroom.com; www.umicore.com

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