Europa Wire: Volkswagen’s PowerCo and Umicore receive regulatory clearance for European battery materials JV000519

Volkswagen’s PowerCo and Umicore receive regulatory clearance for European battery materials JV

(IN BRIEF) Volkswagen’s PowerCo and Umicore gain approval for European battery materials venture PowerCo, the Volkswagen Group’s battery company, and Belgian circular technology firm Umicore have secured regulatory approval for their joint venture to produce cathode active materials (CAM) and precursor materials in Europe. The companies aim to supply PowerCo’s European battery cell factories with the materials from 2025 onwards. The venture will cover a large part of PowerCo’s European Union demand and give Umicore secured access to an important part of the European market for EV cathode materials. The partners aim to produce CAM and PCAM for a targeted 160 GWh cell capacity per year by the end of the decade.
(PRESS RELEASE) BRUSSELS/SALZGITTER, 24-Mar-2023 — /EuropaWire/ — PowerCo, the new battery company of the Volkswagen Group, and Belgian circular technology group Umicore have obtained full regulatory approvals for their joint venture announced in September 2022. The partners can now swiftly proceed to prepare for large-scale industrial production of cathode active materials (CAM) and precursor materials (PCAM) in Europe.
Cathode active materials are the key technological lever for battery performance, as well as the single biggest contributor to overall battery cost. They are thus strategically important input materials central to battery value creation, and crucial for a successful powertrain transition towards e-mobility.
From 2025 onwards, the joint venture set up by PowerCo and Umicore will supply PowerCo’s European battery cell factories with key materials for production. Headquartered in Brussels, the joint venture will cover a large part of PowerCo’s EU demand and provide Umicore with secured access to an important part of the European demand for EV cathode materials.
The joint venture is on track to produce, by the end of the decade, CAM and PCAM for a targeted 160 GWh cell capacity per year, which is equivalent to an annual production capacity capable of powering about 2.2 million full electric vehicles. The partners will therefore be important contributors to the green mobility transition and the further development of a local, sustainable, and fully integrated European battery supply chain.
The production site search is ongoing. The location of the site and the name of the joint venture will be disclosed in due course.
Media Contacts:
Dr. Stefan ErnstSpokesperson Battery | Volkswagen Group TechnologyTel. +49 (0) 5361 / 9-960976stefan.ernst1@volkswagen.de
Marjolein ScheersUmicore | Director External RelationsTel. +32 2 227 71 47marjolein.scheers@eu.umicore.com
SOURCE: Volkswagen