Umicore and PowerCo establish joint venture for European battery materials production- Unique cooperation in European automotive industry: Umicore and Volkswagen Group battery company PowerCo to establish large-scale supply chain for sustainable batteries
- Joint venture invests € 3 billion and aims to produce battery materials for 2.2 million fully electric cars per year by the end of the decade
- Headquartered in Brussels, JV will provide Umicore secured access to important part of European demand for EV cathode materials and cover large part of supply for PowerCo’s gigafactories in Europe
- Major milestone to help European Union achieve its Green Deal ambitions
Brussels/Salzgitter, 26 September 2022 – Umicore and PowerCo, the new battery company of the Volkswagen Group, announced today the founding of 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. The partners aim to produce by the end of the decade
cathode materials 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. Cathode active materials are crucial for a successful powertrain transition towards e-mobility as they are the key technological lever for battery performance, as well as the biggest single contributor to overall battery cost.
The long-term partnership includes the production of precursor and cathode materials in Europe, which are strategically important input materials central to battery value creation. In addition, Umicore and PowerCo will collaborate on the sustainable and responsible sourcing of raw materials, an area in which Umicore is an industry leader. Finally, Umicore will be providing refining services to PowerCo and both partners aim to include, at a later stage, elements of refining and battery recycling based on Umicore’s technology and know-how into the scope of the JV.
(20min delay)