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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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Daily EV Recap: NJ signs law approving a punitive $250 new EV registration fee

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Listen to a recap of the top stories of the day from Electrek. Quick Charge is now available on Apple PodcastsSpotifyTuneIn and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded Monday through Thursday and again on Saturday. Subscribe to our podcast in Apple Podcast or your favorite podcast player to guarantee new episodes are delivered as soon as they’re available.

Stories we discuss in this episode (with links):

‘Pro-EV’ New Jersey just OK’ed the US’s highest dumb EV fee

BYD says EVs have entered the ‘knockout round’ with next-gen tech rolling out

Ford drastically cuts workforce at F-150 Lightning EV plant amid ‘much slower’ demand

XPeng (XPEV) launches two EVs in Germany with plans to enter more EU nations later this year

Tesla starts using ‘Supervised Full Self-Driving’ language

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Drop us a line at tips@electrek.co. You can also rate us in Apple Podcasts or recommend us in Overcast to help more people discover the show!

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The first entirely US-made crystalline solar panels are coming to market

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The first entirely US-made crystalline solar panels are coming to market

All US-made solar panels featured only imported solar cells until now, but two US manufacturers just struck a three-year, $400 million deal. 

Canada-headquartered Heliene, which makes solar panels in Minnesota, will incorporate Georgia-based Suniva’s US-made monocrystalline silicon solar cells into its panels, and those “Made in the USA” panels will hit the market in mid-2024, thanks to a new three-year strategic sourcing contract between the two companies.

Heliene’s modules will be the first crystalline solar panels with US-made solar cells. Suniva says the catalyst for the pairing was solar project owners and developers wanting their projects to qualify for the 10% Domestic Content Bonus Investment Tax Credit. That’s achieved by using US-made cells based on the US Department of Treasury’s guidance published in May 2023 – and that’s in addition to the 30% IRA tax credit for renewable energy factories.

US Treasury Secretary Janet Yellen, who visited Suniva’s Norcross, Georgia, factory yesterday, said, “Before this Administration, solar companies across the United States were struggling. Between 2016 and 2020, nearly 20% of solar manufacturing jobs were lost. Now, though there remain significant challenges, Inflation Reduction Act tax credits are helping change the game.”

Cristiano Amoruso, CEO of Suniva, said, “We are proud to fulfill our long-standing promise to bring back cell manufacturing to the United States at our Norcross facility.”

Read more: The US’s oldest solar factory filed for bankruptcy in 2017 – but now it’s back


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Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here. –ad*

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Porsche retires gas-powered Boxster and Cayman in the EU with all-electric model coming

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Porsche retires gas-powered Boxster and Cayman in the EU with all-electric model coming

The gas-powered Porsche 718 Boxster and Cayman models are being discontinued in Europe as an all-electric version approaches its debut.

Porsche retires gas-powered 718 Boxster, Cayman cars

After announcing plans to retire its best-selling SUV in Europe, the Macan, Porsche will do the same with its 718 Boxster and Cayman models.

Porsche retired the gas-powered Macan early due to new cybersecurity rules. Its availability ends in July 2024. The gas-powered 718 Boxster and Cayman are now set for the same fate.

In a statement to Auto Express, Porsche said as a result of the rule changes “sale of the 718 models with an internal combustion engine is discontinued in the EU and some states that apply EU legislation from now on, thereby ensuring that the vehicles can be delivered to customers and registered by the deadline.”

Porsche did note the 718 Cayman GT4 RS and 718 Spyder RS are not impacted “due to small series regulations.”

Porsche-Macan-EV-Turbo
Porsche Macan EV (left) and Turbo (right) versions (Source: Porsche AG)

Although the regulation applies to all vehicles (ICE and EV), Porsche is preparing to launch an all-electric 718 model. It’s not expected to have any issues with the new rules.

Like with the Macan, updating the gas-powered version would be too costly with an electric model rolling out anyways.

Porsche’s electric 718 is getting closer to production ahead of its debut. We got a sneak peek of the EV this week after it was spotted testing in the Arctic Circle rocking production headlights.

Porsche 718 EV testing (Source: CarSpyMedia)

The German automaker is expected to reveal the electric 718 model before the end of the year with deliveries kicking off in 2025. Porsche has already begun preparing its Zuffenhausen plant for the new EV.

Porsche CEO Oliver Blume confirmed plans to begin Macan EV deliveries later this year. Up next will be an electric 718 model followed by the long-awaited Cayenne EV.

Porsche-retires-Boxster
(Source: Porsche AG)

Porsche said it’s expanding “upward” with plans for an ultra-luxury electric SUV, slated to sit above the Cayenne. Blume called it “a very sporting interpretation of an SUV.”

Despite several automakers pulling back Porsche is sticking to its target of an 80% EV delivery share by 2030.

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