The joint venture between PowerCo, a battery company from the Volkswagen Group, and Belgian materials technology group Umicore, announced in September 2022, has now received all regulatory approvals. The partnership aims to quickly begin preparations for large-scale industrial production of cathode materials and precursor materials in Europe. The joint venture’s headquarters will be in Brussels, near Umicore’s headquarters, but the search for a production site is still ongoing. Volkswagen says the name and location of the joint venture will be announced “in due course.”
By the end of the decade, the partners plan to produce cathode materials for 160 gigawatt-hours of cell capacity per year, sufficient for around 2.2 million fully electric vehicles. The joint venture aims to cover a significant portion of PowerCo’s EU requirements while providing Umicore with secure access to an essential part of the European demand for cathode materials for electric vehicles.
Cathode material is a critical technological lever for battery performance and the most significant single factor in the total cost of the battery. Therefore, Volkswagen expects that its cathode material from the Umicore cooperation will provide various competitive advantages, such as improved energy density, prices, and supply chain reliability.
In addition to the joint venture’s main objective, PowerCo and Umicore will also cooperate within the framework of further agreements in the sustainable and responsible procurement of raw materials. Umicore will provide refining services for PowerCo, and there are discussions about the possibility of Umicore contributing its refining and recycling activities to the joint venture.
PowerCo and Umicore’s joint venture will contribute to boosting European battery production and support the transition towards electric mobility. With the increasing demand for electric vehicles, this collaboration can strengthen Europe’s position in the global market and provide innovative solutions to tackle climate change.
