PowerCo & Umicore establish JV for battery materials production
PowerCo, the new battery company of the Volkswagen Group, and Umicore, are joining forces in a joint venture for precursor and cathode material production in Europe.
From 2025 onwards, the joint venture will supply PowerCo's European battery cell factories with key materials. By the end of the decade, the partners aim to produce cathode material and their precursors for 160 GWh cell capacity per year, which compares to an annual production capacity capable of powering about 2.2 million full electric vehicles, a press release reads.
The partnership centers around the production of precursor and cathode materials in Europe. Under the terms of additional agreements, Umicore and PowerCo will collaborate on "the sustainable and responsible sourcing of raw materials". At a later stage, the partners aim to include elements of refining and battery recycling into the scope of the JV.
The current plan is to have the JV start production in 2025 to supply PowerCo’s Salzgitter factory, reaching an annual capacity of 40 GWh in 2026. Both partners are aiming to grow the JV‘s annual production capacity to 160 GWh by the end of the decade. However, the search for the right production site is still ongoing.
Both partners will jointly control the JV – which has not been named yet – and will equally share costs, investments, revenues and profits. Together they plan to invest EUR 3 billion into new materials production capacities, the press release continues.