Volkswagen’s new battery company, PowerCo, announced Monday that it would be forming a joint venture with Umicore to produce battery materials for around 2.2 million EVs. The new joint venture is a significant milestone, establishing one of the first fully integrated auto supply chains as VW looks to ramp up EV sales.
PowerCo is a 100% owned subsidiary of Volkswagen that was established in July 2022 to handle the automaker’s global battery operations. Volkswagen and PowerCo began construction on its battery plant in Salzgitter, Germany, in July – the first of six planned.
As demand for electric vehicles continues soaring in all major auto markets (US, Europe, China, etc.), automakers are scrambling to keep up with demand. Many automakers are already sold out of their popular EV models for the year. With demand only expected to continue accelerating, the key question becomes: Where will automakers source all the materials?
Since the Inflation Reduction Act was passed in August, automakers from around the globe have rushed to secure deals to lock up critical battery materials in North America. For example, Hyundai, Mercedes-Benz, Honda, and Volkswagen (among others) have entered into agreements to source minerals in North America.
Volkswagen’s new JV with Umicore focuses on the automaker’s home market in Europe, where the automaker expects to overtake Tesla in EV sales by 2025, according to a Bloomberg Intelligence report.
The partnership was previously announced in December 2021, but today’s announcement confirms it, giving us a better idea of what we can expect going forward.
VW breaks ground on battery factor in Germany Source: VW
Why the Volkswagen Umicore partnership is significant
With Volkswagen’s PowerCo planning for six battery factories in total, it will require a significant amount of minerals to keep up with production.
That being said, Umicore announced in July its plans to build a manufacturing facility in Canada for cathode active battery materials (CAM) and their precursors (pCAM), which are crucial for EV battery performance and one of the most costly components.
The partnership aims for 160 GWh cell capacity per year by 2030, which is enough to power around 2.2 million EVs.
Thomas Schmall, chairman of the supervisory board of PowerCo, talks about how critical cathode material is to EV production, stating:
Cathode material is an indispensable strategic resource for battery production, accounting for roughly fifty percent of overall cell value. Immediate and long-term access to extensive capacity is thus a very clear competitive advantage. We are setting up a sustainable, transparent supply chain with high environmental and social standards, localizing value creation here in Europe.
Volkswagen (PoweCo) and Umicore plan for an equal 50/50 partnership where investments, costs, and profits will be split down the middle. The partners plan to invest about €3 billion (about $2.9 billion) to upgrade its supply chain for superior material production capabilities.
The Umicore partnership looks to give Volkswagen a significant advantage in the European EV market with one of the first fully integrated supply chains, from mining to refining capabilities.
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Tesla is being forced to remove 64 Superchargers at stations along the New Jersey Turnpike as the local authorities have decided to go with another provider.
Elon Musk claimed corruption without any evidence.
The New Jersey Turnpike is a system of controlled-access toll roads that consists of a 100-mile section of important New Jersey highways.
The agreement has now expired, and instead of renewing it, the authority decided to give an exclusive agreement to Applegreen, which already operates in all service areas on the turnpike.
Tesla issued a statement saying that it is disappointed with the situation, but that it has prepared for this by building new stations off the turnpike for the last few years:
The New Jersey Turnpike Authority (“NJTA”) has chosen a sole third-party charging provider to serve the New Jersey Turnpike and is not allowing us to co-locate. As a result, NJTA requested 64 existing Supercharger stalls on the New Jersey Turnpike to not be renewed and be decommissioned. We have been preparing for 3 years for this potential outcome by building 116 stalls off the New Jersey Turnpike, ensuring no interruption for our customers. The map below outlines the existing replacement Superchargers, and Trip Planner will adjust automatically.
Tesla CEO Elon Musk went a step further and called it “corruption” without any evidence.
The automaker’s agreement with NJTA expired, and they decided to go with a sole provider. Applegreen will reportedly deploy chargers at all 21 turnpike service stops.
Here are Tesla’s replacement Superchargers off the turnpike:
Electrek’s Take
I don’t like the decision from the Turnpike authorities. More chargers are better than fewer chargers. However, I also don’t like Musk calling everything he doesn’t like fraud or corruption.
While I agree with Tesla that it is unreasonable to force them to remove the stations, it appears to be an oversight on Tesla’s part not to have included stipulations in their agreement to prevent such a scenario from happening in the first place.
Who signs a deal to deploy millions of dollars worth of charging equipment with only the right to operate them there for 5 years?
It looks like Tesla knew this was coming since it specifically built several new Supercharger stations off the turnpike to prepare for this.
On the other hand, I don’t like the Turnpike Authority using the term “universal charger” as if this is a positive for Applegreen. They are going to use CCS, and everyone is moving to NACS in North America.
Yes, for a while, only Tesla owners will have to use adapters, but that will soon change and the current NACS Supercharger will be even more useful.
At the end of the day, the stations are already there. Let them operate them.
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ZQUIP is working hard to bring more smart, efficient, modular power solutions to commercial job sites everywhere – and at the core of their vision for the future is battery-swap technology. You can see just how easy it is make that happen here.
MOOG Construction’s energy skunkworks ZQUIP made headlines last year by bringing the cordless power tool battery model to the world of industrial-grade heavy equipment.
“The 700V ZQUIP Energy Modules are at the core of this innovation, said Chris LaFleur, managing director for QUIP. “ZQUIP modules are interchangeable across any machine we convert regardless of size, type, or manufacturer, and will enable a level of serviceability, runtime, and value that is far greater than current battery solutions.”
ZQUIP generator prototype on Caterpillar excavator; via ZQUIP.
Most machines on most sites sit idle most of the time, but converting all those machines to battery electric power means that megawatts of battery capacity are being wasted. By utilizing swappable batteries, job sites can do what technicians and contractors have been doing for years with power tools: quickly get the energy they need to the tool they need when they need it, without the need to have a dedicated battery for every tool.
If you need to be able to run the machine non-stop and don’t have a reliable way to recharge your batteries quickly enough, a 140 kW diesel generator is built into a package the same size and shape as the batteries. In fact, if you look closely at the CASE excavator below (on the right), the “battery” on the right is, in fact, a diesel Energy Module.
The demo video, below, shows a pair of CASE-based electric excavators – one wheeled, one tracked – operating on ZQUIP’s Energy Modules. It takes less than two minutes to remove one battery, and presumably about the same time to swap another one in, for a 5 (ish) minute swap.
Even if you call it ten, by eliminating the need to get the entire machine up and out for charging (or for service, if there’s an issue with the battery/controllers), the ZQUIP battery swap construction equipment solution seems like a good one.
ZQUIP HDEV battery swap
SOURCE | IMAGES: ZQUIP.
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The Trump administration is confident that a massive liquified natural gas project in Alaska will find investors despite its enormous cost.
President Donald Trump has pushed Alaska LNG as a national priority since taking office. Alaska has already spent years trying to build an 800-mile pipeline from the North Slope above the Arctic Circle south to the Cook Inlet, where the gas would be cooled and shipped to U.S. allies in Asia.
But Alaska LNG has never gotten off the ground due to a stratospheric price tag of more than $40 billion. Trump has pushed Japan and South Korea in particular to invest in the project, threatening them with higher tariffs if they don’t offer trade deals that suit him.
“If you get the commercial offtakers for the gas, financing is pretty straightforward,” Energy Secretary Chris Wright told CNBC’s Brian Sullivan in Prudhoe Bay, Alaska. “There [are] countries around the world looking to shrink their trade deficit with the United States, and of course, a very easy way to do that is to buy more American energy,” Wright said.
Energy analysts, however, are skeptical of the project. Alaska LNG “doesn’t have a clear cut commercial logic,” Alex Munton, director of global gas and LNG research at Rapidan Energy, told CNBC in April.
“If it did, it would have had a lot more support than it has thus far, and this project has been on the planning board for literally decades,” Munton said.
Defense Department support
Wright said the project would be built in stages and initially serve domestic demand in Alaska, which faces declining natural gas supplies in the Cook Inlet. Interior Secretary Doug Burgum said the Department of Defense is ready to support the project with its resources.
“They’re ready to sign on to take an offtake agreement from this pipeline to get gas to our super strategic, important bases across Alaska,” Burgum said of the Pentagon in a CNBC interview at Prudhoe Bay.
Alaska LNG, if completed, would deliver U.S. natural gas to Japan in about eight days, compared to about 24 days for U.S. Gulf Coast exports that pass through the congested Panama Canal, Burgum said. It would also avoid contested waters in the South China Sea that LNG exports from the Middle East pass through, the interior secretary said.
Wright said potential Asian investors have questions about the timeline and logistics of Alaska LNG. The pipeline could start delivering LNG to southern Alaska in 2028 or 2029, with exports to Asia beginning sometime in the early 2030s, Wright said.
Glenfarne Group, the project’s lead developer, told CNBC in April that a final investment decision is expected in the next six to 12 months on the leg of a proposed pipeline that runs from the North Slope to Anchorage. Glenfarne is a privately-held developer, owner and operator of energy infrastructure based in New York City and Houston.