Volkswagen AG’s battery unit and Belgium’s Umicore SA are setting up a joint venture that will jointly invest about €3bn (roughly R52.1bn) in new battery materials capacity to feed growing demand for electric cars.
The unit, to be based in Brussels, is set to start operation in 2025 to supply a large part of VW’s European battery cell factories with cathode materials, Umicore and VW’s PowerCo said Monday. By the end of the decade, the JV is aiming to power about 2.2 million fully-electric cars, equivalent of about 160 gigawatt hours.
“Cathode material is an indispensable strategic resource for battery production, accounting for roughly 50% of overall cell value,” Thomas Schmall, VW’s technology head and chair of PowerCo said in a statement. “Immediate and long-term access to extensive capacity is thus a very clear competitive advantage.”
The search for a production site is still ongoing, while Umicore last week inaugurated a cathode plant in Poland. The announcement advances a pact outlined in December, and the partners also plan to collaborate on the sustainable and responsible sourcing of raw materials.
Europe’s biggest automaker is establishing six battery plants in the region to enable the industry’s most ambitious rollout of electric cars with a plan for 50 purely battery-powered models by the end of the decade.
More stories like this are available on bloomberg.com
VW builds out battery supply chain with $2.9bn Cathode joint venture
Image: Bloomberg
Volkswagen AG’s battery unit and Belgium’s Umicore SA are setting up a joint venture that will jointly invest about €3bn (roughly R52.1bn) in new battery materials capacity to feed growing demand for electric cars.
The unit, to be based in Brussels, is set to start operation in 2025 to supply a large part of VW’s European battery cell factories with cathode materials, Umicore and VW’s PowerCo said Monday. By the end of the decade, the JV is aiming to power about 2.2 million fully-electric cars, equivalent of about 160 gigawatt hours.
“Cathode material is an indispensable strategic resource for battery production, accounting for roughly 50% of overall cell value,” Thomas Schmall, VW’s technology head and chair of PowerCo said in a statement. “Immediate and long-term access to extensive capacity is thus a very clear competitive advantage.”
The search for a production site is still ongoing, while Umicore last week inaugurated a cathode plant in Poland. The announcement advances a pact outlined in December, and the partners also plan to collaborate on the sustainable and responsible sourcing of raw materials.
Europe’s biggest automaker is establishing six battery plants in the region to enable the industry’s most ambitious rollout of electric cars with a plan for 50 purely battery-powered models by the end of the decade.
More stories like this are available on bloomberg.com
READ MORE
Mazda discussing ending vehicle production in Russia
Suzuki announces #JimnyGathering
Fisker to sell electric SUV in India with view to local production
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most read
Latest Videos