Umicore forms joint venture with Volkswagen

Umicore and Volkswagen AG have announced that they plan to establish a joint venture (JV) focused on developing precursor and cathode material for electric vehicle (EV) battery cell production in Europe.

According to a news release issued by Umicore, headquartered in Brussels, through the joint venture Umicore and Volkswagen also will collaborate on the sustainable and responsible sourcing of raw materials. Both parties aim to include elements of refining and battery recycling into the scope of the partnership at a later stage.

Umicore says the joint venture’s precursor and cathode material production capacity will be ramped up gradually, starting in 2025 with an initial annual production of 20 gigawatt-hours for Volkswagen’s plant in Salzgitter, Germany, and should grow to an annual production capacity of up to 160 gigawatt-hours by the end of the decade. This compares with annual production capacity capable of powering about 2.2 million full EVs. 

Umicore says it will continue to develop its technological and production capabilities to serve other customers and regions.

Mathias Miedreich, CEO of Umicore says, “As a leader in clean mobility materials, we are committed to support our automotive and battery-cell customers with their electrification strategies. We are very pleased to partner with Volkswagen in this unique joint venture and will bring in our long-standing and proven expertise in battery materials, as well as our strong commitment and solutions to today’s sustainability challenges. The complementarity of our extensive technology, innovation and industrial know-how, and shared sustainability convictions will provide a strong framework for the JV and will give us a considerable first-mover advantage.” 

Thomas Schmall, a member of the board of management of Volkswagen Group for Technology and CEO of Volkswagen Group Component, says “The Volkswagen unified cell must be at the forefront of performance, costs and sustainability right from the start. Teaming up with Umicore enables us to establish a state-of-the-art supply chain in Europe as we share common values such as responsible sourcing of raw materials, as well as closed-loop thinking.”

The planned JV is subject to final agreements and customary conditions, including regulatory approvals.