According to the two companies, this partnership is the first of its kind in the European automotive market. It is intended to help achieve the goals of the European Green Deal and establish a sustainable value chain for batteries. The intention is to gradually increase the joint venture's production capacities for precursors and cathode materials. An initial annual production of 20 GWh for the Volkswagen AG plant in Salzgitter is expected to start in 2025.
By the end of the decade, annual production capacity is expected to rise to up to 160 GWh. This could then power around 2.2 million fully electric vehicles (EVs) per year. At the same time, in addition to the planned joint venture, Umicore will further expand its technical and production capabilities to serve other customers and regions. Through the joint venture, Umicore and Volkswagen AG will also cooperate in the sustainable and responsible sourcing of raw materials - an important core competency of Umicore.