VW Concludes Billion-Euro Battery Joint Venture with Belgium’s Umicore
German automaker Volkswagen is teaming up with Belgian materials technology company Umicore to produce cathodes for batteries in coming generations of VWs. The two companies will invest EZR three billion in the project.
Unlike many other carmakers, Volkswagen is itself producing EV batteries.
“Cathode material is an indispensable strategic resource for battery production, accounting for roughly fifty percent of overall cell value,” said Volkswagen Board Member for Technology and Chairman of the Supervisory Board at VW’s battery subsidiary PowerCo on the company’s website. “Immediate and long-term access to extensive capacity is thus a very clear competitive advantage. We are setting up a sustainable, transparent supply chain with high environmental and social standards, localizing value creation here in Europe.”
VW has earmarked some EUR 20 billion for building six battery-producing gigafactories by 2030. They will have a total annual production capacity of 240 gigawatt hours or enough for around five million electric passenger cars.