Umicore and PowerCo, the Volkswagen Group’s new battery company, said they set up a joint venture for precursor and cathode material production in Europe.
From 2025, the joint venture will supply materials to PowerCo’s European battery cell factories. The partners aim to produce, by the end of the decade, cathode materials and their precursors for 160 GWh cell capacity per year.
The tie-up includes the production of precursor and cathode materials – 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.”
Umicore will also provide refining services to PowerCo and both partners aim to include elements of refining and battery recycling.
Production at the JV – site still to be found – is scheduled to start in 2025 to supply PowerCo’s Salzgitter factory and reach an annual capacity of 40 GWh in 2026. Both partners target to grow the JV’s annual production capacity to 160 GWh by the end of the decade.
Under the terms of the agreement, both partners will jointly control the JV and will equally share costs, investments, revenues and profits. They plan to invest about €3 billion into new production capacities.
The transaction remains subject to regulatory approval and customary closing conditions.
Photo: Umicore and PowerCo establish joint venture
