What’s Happening: PowerCo, the battery company of the Volkswagen Group, and Belgian circular technology group Umicore have received full regulatory approval for their joint venture. The approval allows the partners to proceed with preparations for large-scale industrial production of cathode active materials (CAM) and precursor materials (PCAM) in Europe.
Why It Matters: Cathode active materials are a crucial component in the production of batteries, playing a significant role in battery performance and cost. This joint venture will provide PowerCo with key materials for its European battery cell factories and give Umicore access to an important part of the European demand for EV cathode materials.
Key Points:
- The joint venture will be headquartered in Brussels and will cover a significant portion of PowerCo’s EU demand.
- The partners aim to produce CAM and PCAM for a targeted 160 GWh cell capacity per year by the end of the decade, equivalent to powering 2.2 million full electric vehicles.
- The joint venture will play an important role in the green mobility transition and the further development of a local, sustainable, and fully integrated European battery supply chain.
- The location of the production site and the name of the joint venture will be announced at a later date.
Bottom Line: PowerCo and Umicore’s joint venture has received full regulatory approval, allowing for large-scale production of cathode active materials and precursor materials in Europe. The partners aim to play a significant role in the green mobility transition and the further development of a local, sustainable, and fully integrated European battery supply chain. The location of the production site and the name of the joint venture will be disclosed in due course.
As the demand for electric vehicles continues to grow, the production of high-quality batteries that are capable of powering these vehicles is becoming increasingly important. This joint venture between PowerCo and Umicore will play a key role in meeting this demand by providing PowerCo with the materials it needs to produce batteries for electric vehicles in Europe. The joint venture is also set to contribute to the green mobility transition by producing CAM and PCAM for a targeted 160 GWh cell capacity per year, which is equivalent to powering 2.2 million full electric vehicles.
This joint venture marks a significant step towards the development of a local, sustainable, and fully integrated European battery supply chain. With the location of the production site still to be announced, it will be interesting to see how the joint venture develops and what impact it will have on the European battery industry. As the green mobility transition continues to gain momentum, this joint venture between PowerCo and Umicore will be an important contributor to the growth of the electric vehicle market in Europe.
