Volkswagen Ramps Up Battery Materials Production Via New JV

Volkswagen Ramps Up Battery Materials Production Via New JV
  • Volkswagen AG's VWAGY new battery company PowerCo and Belgian circular materials technology group Umicore have formed a joint venture to produce battery precursor and cathode material in Europe.
  • The parties will invest €3 billion ($2.9 billion) in the joint venture and equally share costs, investments and profits.
  • The partners aim to produce cathode material and their precursors for 160 GWh cell capacity per year.
  • From 2025 onwards, the joint venture will supply PowerCo's European battery cell factories with key materials.
  • Cathode active materials are crucial for a powertrain transition towards e-mobility as they are the key technological lever for battery performance, as well as the biggest single contributor to overall battery cost.
  • Production is scheduled to start in 2025 to supply PowerCo's Salzgitter factory, reaching an annual capacity of 40 GWh in 2026. 
  • "By building up substantial production capacities, we are securing the rapidly growing demand for battery-grade materials for our main customer Volkswagen AG in terms of volume and at optimal cost," said PowerCo CEO Frank Blome.
  • Price Action: VWAGY shares closed lower by 4.64% at $18.59 on Friday.
  • Photo Via Company

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