Battery company PowerCo and Belgian circular materials technology firm Umicore have launched a $2.9bn joint venture (JV) to produce battery materials in Europe.
The JV will focus on producing of precursor and cathode materials for PowerCo’s European battery cell factories, starting from 2025.
Umicore will initially supply material for a 40GWh capacity by 2026 at PowerCo’s battery plant in Salzgitter, Germany.
Volkswagen is planning to build six European battery factories, totaling 240GWh in capacity, by 2030.
The JV will produce cathode materials and their precursors for an annual cell capacity of 160GWh, equating to an annual production capacity of powering 2.2 million fully electric vehicles.
The two firms will also collaborate on the responsible and sustainable sourcing of raw materials, as well as recycling metals from battery materials.
Umicore will also provide refining services to PowerCo.
The two companies will jointly control the JV. The firms will equally share costs, revenues, investments, and profits.