In a statement quoted by AFP, VW said its battery subsidiary PowerCo and Umicore would be equal partners in the project, investing a total of 3 billion euros.
“With the joint venture, Volkswagen aims to produce battery material for 2.2 million fully electric cars per year by the end of the decade,” VW said Monday (26/9/2022).
Overall, Volkswagen is spending tens of billions on an ambitious switch to electric vehicles, while opening up clutch battery factories across Europe. VW itself looks to accelerate its transition to electric vehicles or electric vehicles (EV).
By bringing more of the battery production supply chain within the company, Volkswagen also hopes to reduce its dependence on Asian suppliers to complement its range of new car models.
“The establishment of the joint venture is a new step forward…to keep Europe more self-sufficient and more resilient, more resilient in the (electric vehicle) supply chain,” Thomas Schmall, head of PowerCo’s supervisory board, told a news conference.
The binder, which has not been named, will begin production in 2025 and initially supplies Volkswagen’s flagship battery factory in Salzgitter, Germany.
The site, close to Volkswagen’s historic home in Wolfsburg, is the first of six battery plants being built by the auto giant in Europe, as well as another planned installation in the United States.
With the Umicore partnership, Volkswagen hopes to cover most of the supply for its fleet of battery factories in Europe.
“A new venture in an emerging market is an opportunity to leapfrog the competition,” said Umicore CEO Mathias Miedreich, stressing that the planned scale of production makes it “unique”.
Joerg Teichmann, PowerCo’s head of procurement, said the lack of a supplier that could meet the volumes demanded by Volkswagen to push its electric vehicles meant both sides had to create one together.