Volkswagen Group’s battery subsidiary PowerCo and Belgian materials firm Umicore have officially selected Poland for a new battery parts factory under a joint venture, according to the German automaker’s X post on October 7.
About the JV
PowerCo and Umicore initially announced the joint venture named “Ionway,” worth $2.9 billion in December 2021, ET reports.
It further indicated that Poland will offer cash grants of €350 million ($371 million) for the proposed investment. Its battery parts products will support PowerCo’s battery cell plants in Europe.
Meanwhile, it enables Umicore to secure access to a key part of Europe’s demand for EV battery cathode materials.
In return, the joint project is expected to generate approximately 900 new job opportunities.
Notably, the facility will mark the JV’s first-ever production plant of battery parts for electric vehicles.
“We are thankful for the Polish government’s support. The strategic location of the [new] battery materials plant in Poland, right next to Umicore’s own [existing] battery materials plant, will further enable the transition to electric driving that is truly sustainable.”
Umicore CEO Mathias Miedreich
Project details
Ionway plans to spend €1.7 billion for the Polish battery parts factory development in the southwestern town of Nysa.
The factory will manufacture cathode active materials (CAM) for electric vehicle batteries for the VW Group. It aims to hit an annual production output of about 160 GWh by 2030, sufficiently supporting the production of 2.2 million EVs.
According to Notes from Poland, the project signifies the Opole province’s biggest investment to date.
“This is a landmark investment for the entire Opole region and an opportunity for further regional development.”
Deputy Defence Minister Marcin Ociepa
Ionway stated that Nysa is the ideal location for the plant due to its skilled workforce pool and abundant renewable energy sources. It is also near Umicore’s existing factory.
It further aims to only utilize renewable energy for the plant’s operations to hit carbon neutrality.
Timeline
The report indicated that the Ionway plans to begin development as soon as it obtains the necessary permits.
As mentioned, the facility will open about 900 new job opportunities to local residents.
“The investment by Umicore and PowerCo is the best proof that Poland is one of the leading countries in terms of attracting the largest and most innovative investments. We are also pleased that this is an investment supporting Poland’s sustainable economic and energy transformation towards zero emissions.”
Development Minister Walderma Buda
See Also:
- Volkswagen and Mercedes-Benz partner with Canada for raw materials vital to US battery manufacturing
- Volkswagen confirms $10 billion EV, battery factories to go ahead in Spain
- Volkswagen, Xanadu announced a quantum simulation program for battery materials
- Volkswagen and Mercedes-Benz partner with Canada for raw materials vital to US battery manufacturing
- Volkswagen begins ID.7 EV production at its Emden factory
The Polish Government has set a target of having renewables and nuclear energy sources account for three-quarters of its overall power generation by 2040. It has also attracted EV investments from established brands, including Mercedes-Benz’s €1 billion+ electric van factory.
However, it is interesting to note that Poland is apparently the only EU member state to oppose the 2035 ban on new petrol and diesel cars.
