Volkswagen Ramps Up Battery Materials Production Via New JV - Volkswagen (OTC:VWAGY)

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.
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