Umicore gets green light for VW partnership

Belgium-based metals production and recycling company Umicore has received European Union full regulatory approval on a joint venture (JV) with the PowerCo business unit of the Volkswagen Group.

The JV between Umicore and Salzgitter, Germany-based PowerCo was announced late last year and includes efforts in both Europe and Canada. “The partners can now swiftly proceed to prepare for large-scale industrial production of cathode active materials (CAM) and precursor materials (PCAM) in Europe,” Umicore states.

It is uncertain initially what percentage of PCAM will be created from recycled batteries. Late last year, Umicore Media Relations Officer Caroline Jacobs told Recycling Today relative to the Canadian effort, “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.”

Umicore calls CAM “the key technological lever for battery performance, as well as the single biggest contributor to overall battery cost. They are thus strategically important input materials central to battery value creation, and crucial for a successful powertrain transition towards e-mobility.”

Metals contained in CAM and PCAM (sometimes known as black mass) include lithium, nickel, cobalt and manganese.

The JV is being designed to supply PowerCo's European battery cell factories with these key materials for production from 2025 on, says Umicore. Headquartered in Brussels, the JV will cover a large part of PowerCo’s EU demand and provide Umicore with secured access to an important part of the European demand for EV cathode materials, the firm says.

The JV is on track to produce, by the end of the decade, CAM and PCAM materials sufficient to meet an annual production capacity capable of powering about 2.2 million electric vehicles, according to Umicore.

A search for the JV’s production site is ongoing.