Umicore and PowerCo get official “go” to start joint venture for EU battery materials production
Green light for unprecedented cooperation in the European automotive industry
Full regulatory approvals obtained resulting in the official establishment of the joint venture for large-scale production of cathode materials and precursors in Europe
Brussels/Salzgitter, 23 March 2023 ‒ Umicore and PowerCo, the new battery company of the Volkswagen Group, 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 Umicore and PowerCo 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.