Volkswagen’s PowerCo and Umicore obtain full regulatory approval for EU battery materials production
24 March 2023
PowerCo, the new battery company of the Volkswagen Group, and Belgian circular technology group Umicore have obtained full regulatory approvals for their joint venture announced in September 2022. The partners can now swiftly proceed to prepare for large-scale industrial production of cathode active materials (CAM) and precursor materials (PCAM) in Europe. (Earlier post.)
Cathode active materials are the key technological lever for battery performance, as well as the single biggest contributor to overall battery cost. They are thus strategically important input materials central to battery value creation, and crucial for a successful powertrain transition towards e-mobility.
From 2025 onwards, the joint venture set up by PowerCo and Umicore will supply PowerCo’s European battery cell factories with key materials for production. Headquartered in Brussels, the joint venture will cover a large part of PowerCo’s EU demand and provide Umicore with secured access to an important part of the European demand for EV cathode materials.
The joint venture is on track to produce, by the end of the decade, CAM and PCAM for a targeted 160 GWh cell capacity per year—equivalent to an annual production capacity capable of powering about 2.2 million full electric vehicles.
The production site search is ongoing. The location of the site and the name of the joint venture will be disclosed in due course.