Volkswagen’s PowerCo forms new partnership to produce battery materials for 2.2M EVs

Published

2 years ago

September 26, 2022

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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.

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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Environment

JPMorgan’s calls for a reality check on energy transition are sensible, UAE energy minister says

Published

9 hours ago

April 29, 2024

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JPMorgan’s calls for a reality check on energy transition are sensible, UAE energy minister says

UAE energy minister on JPMorgan urging the need for a 'reality check' on the energy transition

JPMorgan’s calls for a “reality check” on the world’s energy transition goals and pathway is a “sensible,” the UAE’s energy minister told CNBC.

“We need always, whenever we put up predictions, especially long term ones, to have a reality check,” Suhail Al Mazrouei told CNBC’s Dan Murphy in Riyadh, Saudi Arabia on the sidelines of the World Economic Forum.

In a recent note to client, JPMorgan warned that the world needed a “reality check” on its efforts to move from fossil fuels to renewables, pointing out that it could take “generations” to reach net-zero targets.

Higher interest rates, inflation and the ongoing wars in Ukraine and the Middle East are setting back efforts to reduce the use of fossil fuels like oil, coal and gas, the report said.

“I think it’s a very sensible article,” said Al Mazrouei. The minister, however, highlighted that the circumstances and financial capabilities of each country on undertaking the energy transition goals will vary.

The world is not the same… Some can afford it. They worked on fiscal changes, they adjusted their energy costs. Others have not.

Suhail Al Mazrouei

UAE’s Minister of Energy

“The world is not the same … Some can afford it. They worked on fiscal changes, they adjusted their energy costs. Others have not, [they] cannot afford to do it,” he added.

The world’s governments agreed in the 2015 Paris climate accord to limit global average temperature to well below 2°C above pre-industrial levels, and pursue efforts to limit the temperature rise to 1.5°C. To do that, emissions need to be reduced by 45% by 2030 and reach net zero by 2050.

A higher interest rate environment is also making it costlier for the world to transition to a net zero global economy, energy consultancy Wood Mackenzie said in a recent note.

Higher interest rates disproportionately affect renewables and nuclear power, said Peter Martin, Wood Mackenzie’s head of economics, adding that high capital intensity and low returns mean future projects will be at risk.

“The higher cost of borrowing negatively affects renewables and nascent technologies, compared to more established oil and gas, and metals and mining sectors, which remain somewhat insulated,” he said.

Just this month, Scotland’s government scrapped its 2030 climate target, with its Net Zero Minister Mairi McAllan saying the goal is “out of reach.”

She added that “severe budgetary restrictions imposed by the UK government” had a part to play in the retreat. The country had pledged to pare back emissions of greenhouse gases by 75% by 2030, compared to 1990 levels.

Major oil companies such as BP and Shell also trimmed back on climate targets this year.

The UAE is one of the countries that signed up to triple the world’s capacity for nuclear energy by the year 2050.

Environment

RIZON class 4 and 5 electric MD trucks arrive in Canada

Published

17 hours ago

April 28, 2024

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RIZON class 4 and 5 electric MD trucks arrive in Canada

RIZON Truck Enters Canadian Market with its Groundbreaking Electric Class 4 and 5 Vehicles

Daimler’s new, all-electric truck brand made its Canadian debut this week with the official market launch of its battery electric class 4 and 5 medium duty work trucks.

After making its North American debut at the 2023 ACT Expo in Anaheim, California, Daimler Truck’s RIZON brand has continued on a steady march towards production with initial preorders set to open this June. But it won’t just be Americans who can order a new RIZON electric box truck – Canadians will be able to add them to their fleets at the same time.

“Canada is very advanced regarding green energy and infrastructure and is a natural next step for RIZON’s second market,” explains Andreas Deuschle, the Global Head of RIZON. “We are very happy to bring our zero-emission solution to Canadian customers. They are proven OEM trucks with the latest technology from Daimler Truck.”

Modernism and mandates

RIZON electric truck interior; via Daimler Truck.

Along with California and a handful of other US states, the Canadian government has plans to limit (or outright ban) the use of diesel trucks on its roads. In the case of Canada, the nation has committed to a zero emissions goal by 2050 – but Daimler could have gotten there without launching a new brand.

So, why is Daimler launching a new brand?

RIZON is about reaching new customers with a chassis that’s been designed from the ground-up to be an EV. These customers might be new to Daimler, or looking to replace an aging fleet of Isuzu or (more likely) Mitsubishi Fuso cabovers with something a little more modern.

What they’ll find in a RIZON, then, is a smooth, quiet, and car-like ride that will make the “step up” from something like a Ford E-Transit easier than they might think.

Our own Jameson Dow got to drive a RIZON e18L model at an event hosted by Velocity Truck Centers at Irwindale Speedway last year, and came away impressed with the truck’s smooth acceleration and adjustable regenerative braking.

RIZON will offer four model variants for Canadian customers, the e16L, e16M, e18L, and the e18M, with a range of configurations and options ranging from 7.25 to 8.55 ton GVWRs.

Electrek’s Take

There’s definitely a place in the North American market for an agile, easy-to-drive medium duty truck like the RIZON, and Daimler’s nationwide network of Freightliner and Western Star dealers should give first time MD buyers a bit more peach of mind than they might get from a startup brand.

You can check out the specs on each of the RIZON electric models, below, then let us know what you think of these new cabover EVs in the comments.

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Environment

777 hp electric overland concept from Italdesign bows in Beijing [video]

Published

18 hours ago

April 28, 2024

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777 hp electric overland concept from Italdesign bows in Beijing [video]

Italdesign Quintessenza Is A Piece Of Italian Overlanding Art

The all-new, all-electric Italdesign Quintessenza concept is a high-tech Italian take on the Porsche Dakar concept that’s just begging to be put into production.

Making its debut at the Beijing Auto Show, the Italdesign Quintessenza concept embodies both the dynamic prowess of a GT and the versatile adaptability of a pick-up truck. At least, that’s what its makers say. And, if your idea of a pickup truck leans more towards “Subaru Brat” than “Ford F-150 Lightning,” that’s probably right!

The rear section of the Quintessenza converts from a “hatchback” to an open “pickup” bed in true Brat fashion. The rear seats are designed to flip 180-degrees backwards, providing a rear-facing, panoramic “stargazing” mode that promises, “(the) experience and feeling of connection with nature and the outside world.”

Stargazing mode

In its more conventional GT “mode,” the Quintessenza is arguably the best-looking Italdesign concept to come out in years, with vertical lighting elements up front and aggressively-sculpted rear haunches that this writer thinks would be a natural for Audi.

Those design elements aren’t just aesthetic – they’re loaded with electronics. “Two aerodynamic fins that integrate the ADAS systems are present on the upper back of the roof, at the level of the C-pillars,” reads the official release. “They map the surrounding environment when the satellite signal is poor, and offer multifunction lights indicating the car’s driving mode and braking when the hard top is removed.”

Quintessenza vertical elements

So, what kind of vehicle is the Italdesign Quintessenza? Is it a true overland GT, in the style of the Porsche Dakar or 911 SC/RS (the rally car that became the 959)? Is it a high-end spin on the classic Subaru Brat? A futuristic Ute for traversing the Australian outback? Or is it something else entirely?

That’s above our pay grades – but you, dear readers? You guys know what’s up, so check out the official Quintessenza launch video (below), then let us know what you think of Italdesign’s latest in the comments section at the bottom of the page.