Umicore links with Volkswagen on EV battery effort

Belgium-based metals producer and recycler Umicore and Volkswagen battery subsidiary PowerCo have announced they plan to extend their collaboration in battery materials and are “exploring a strategic long-term supply agreement to serve PowerCo’s future battery Gigafactory for electric vehicles (EVs) in North America.”

In July, Umicore announced its plan to construct a manufacturing facility in Ontario to produce cathode active battery materials (CAM) and their precursor materials (pCAM) for the North American electric vehicle (EV) market.

At that time, Umicore Media Relations Officer Caroline Jacobs told Recycling Today, “Indeed, we will also explore refining and battery recycling opportunities to establish our closed-loop business model in the region and to operate as locally as possible to achieve a truly sustainable battery supply chain.”

The newly announced nonexclusive agreement would make PowerCo an important customer for Umicore’s planned battery materials production plant in Canada, Umicore says. “This future facility would combine the production of precursor and cathode materials and thereby complete the missing link in Canada’s battery value chain from natural resources to electric mobility,” the firm adds.

“Taking our partnership across the Atlantic would foster Umicore’s and PowerCo’s shared strategic convictions of enabling and accelerating clean mobility on a secure and sustainable local-for-local basis,” says Ralph Kiessling, an executive vice president of Umicore. “For Umicore, a long-term cooperation with PowerCo would support our plans to build Canada’s first-of-its-kind precursor and cathode materials facility, which would in turn provide PowerCo with secure access to these critical materials and enable the ramp-up of its battery cell production in North America.”

Jörg Teichmann, chief purchasing officer of PowerCo SE, says, “This partnership will provide PowerCo with access to locally produced battery materials for cell production in North America. We will benefit from tried and tested cooperation and the product quality of Umicore.”

Umicore says it is in negotiations with several potential customers for production contracts in North America. Pending additional contracts, the company says it expects to start construction of its Ontario Gigafactory in 2023 and begin operations at the end of 2025.

Umicore refers to itself as a circular materials technology company, with Recycling (along with Catalysis and Energy & Surface Technologies) as one of its three business units.