PowerCo and Umicore's Green Association Gets Approval
The Volkswagen Group's new battery company, PowerCo, and Belgium's Umicore, a circular technology group, have received regulatory clearance for their joint venture, announced in September 2022. With this approval, they can now move ahead quickly to prepare for large-scale production of cathode active materials (CAM) and precursor materials (PCAM) in Europe.
Cathode active materials are essential for battery performance and make up the largest portion of overall battery cost. As a result, they are crucial for the successful transition towards e-mobility and play a strategic role in creating battery value.
Starting in 2025, the joint venture between PowerCo and Umicore will provide PowerCo's European battery cell factories with essential production materials. Based in Brussels, the joint venture will meet a significant portion of PowerCo's EU demand while also granting Umicore reliable access to a critical segment of the European market for EV cathode materials.
The joint venture aims to achieve a targeted 160 GWh cell capacity per year by the end of the decade, which could power approximately 2.2 million full electric vehicles annually. With this ambitious goal, the partners will play a critical role in advancing the green mobility transition and promoting a sustainable, fully integrated European battery supply chain.