Volkswagen Builds Out Battery Supply Chain With $2.9 Billion Cathode JV
- Battery cathode plant with Umicore to be located in Europe
- US, Europe legislation incentivize local production ventures
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Volkswagen AG is deepening its European battery supply chain with a 3 billion-euro ($2.9 billion) joint venture to make battery materials that feed growing electric-car demand amid tightening legislation on local production.
The equal venture with Belgium’s Umicore SA, which will supply VW’s upcoming battery cell factories in Germany and Spain with cathode and other precursor materials, plans to start operation in 2025, the companies said Monday. By the end of the decade, the JV is aiming to power about 2.2 million fully-electric cars, equivalent to about 160 gigawatt hours.