Volkswagen Group's PowerCo and Belgian firm Umicore have obtained full regulatory approvals for their joint venture on battery materials. The partners can now swiftly proceed to prepare for large-scale industrial production of cathode active materials (CAM) and precursor materials (PCAM) in Europe.
The companies claims that the search for a production site is on. The JV is on track to produce, by the end of the decade, CAM and PCAM for a targeted 160 GWh cell capacity per year, which is equivalent to an annual production capacity capable of powering about 2.2 million full electric vehicles, they add.
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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 JV set up by PowerCo and Umicore will supply PowerCo's European battery cell factories under construction in Spain and Germany 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, according to the partners.
The companies, therefore, claims to be important contributors to the green mobility transition, and the further development of a local, sustainable, and fully integrated European battery supply chain.