JV between PowerCo and Umicore: To Produce European Battery Materials Production

PowerCo, the Volkswagen Group's new battery company, announced a new partnership with Umicore to produce precursor and cathode material production in Europe.

The JV intends to invest RM 4 billion (EURO 3 billion) in new material production capacities to finance the project and plans to produce battery materials for 2.2 million fully electric cars per year.

Through this joint venture, the result will supply key materials to PowerCo's European battery cell factories beginning in 2025 which hopes to produce cathode material and precursors for 160 GWh cell capacity per year which also potential for approximately 2.2 million EVs to be built.  

Cathode active materials are critical for a successful powertrain transition to e-mobility as these are core parts of technological lever for battery performance and the single largest contributor to overall battery cost.

The JV sees both partners to share the costs, investments, revenues, and profits equally which includes monitoring the whole operation strategy.

Under the same agreement, the result aims to involve aspects of refining and battery recycling which is solely based on Umicore’s technology and know-how.

Umicore is a Belgian circular materials technology group.