Volkswagen's battery unit and Belgian materials company Umicore have formed a joint venture to produce the materials needed for batteries, the two companies announced.
VW's PowerCo, based in Salzgitter in Germany, and Brussels-based Umicore aim to invest €3 billion ($2.9 billion) with a view to producing the raw materials for 2.2 million electric vehicles by the end of the decade.
The joint venture, which will be based in Brussels, aims to supply most of the demand from VW's planned European battery cell plants, providing primarily cathodes and pre-production goods for batteries with a total capacity of 160 gigawatt-hours.
Along with its partners, VW plans to be producing electric vehicle batteries with a total output of 240 gigawatt-hours a year in six European plants by the end of the decade.
"The largest cost factor in electric vehicles at the moment is the battery," PowerCo purchasing manager Jörg Teichmann said. The battery was for this reason the basis for success in the field, and PowerCo was securing volume at the best price with Umicore.
Umicore chief executive Mathias Miedreich described the joint venture as strategically unique in creating the first comprehensive supply chain in the sector in Europe.
"The joint venture will give both partners a significant first-mover advantage in the fast-growing e-mobility market in Europe," Umicore said.
"Both partners aim to include, at a later stage, elements of refining and battery recycling based on Umicore's technology and know-how," it added.
Notice: No person, organization and/or company shall disseminate or broadcast the above article on Xinhua Silk Road website without prior permission by Xinhua Silk Road.
A single purchase
