Umicore, VW in battery materials JV
Subject to final agreements and customary conditions, including regulatory approvals, Umicore and Volkswagen will establish a joint venture in precursor and cathode material production in Europe. This will begin in 2025 with initial production of 20 GWh/year for the plant in Salzgitter, Germany, and should grow to 160 GWh/year by 2030, enough to power about 2.2 million full electric vehicles.
Umicore will continue to develop its technological and production capabilities for other customers and regions and the firms will also collaborate on the sustainable and responsible sourcing of raw materials, which Umicore cites as a key strength. They will later include elements of refining and battery recycling into the scope of the JV.
“The partnership’s significant scale will provide secure and cost-competitive supplies of innovative, sustainably sourced and tailored high-performance cathode materials for Volkswagen’s ambitious unified cell strategy,” Umicore said. “It provides Umicore secured access to an important part of the European demand for EV cathode materials, which will unlock significant economies of scale.”