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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Today was the official start of racing at the Electrek Formula Sun Grand Prix 2025! There was a tremendous energy (and heat) on the ground at NCM Motorsports Park as nearly a dozen teams took to the track. Currently, as of writing, Stanford is ranked #1 in the SOV (Single-Occupant Vehicle) class with 68 registered laps. However, the fastest lap so far belongs to UC Berkeley, which clocked a 4:45 on the 3.15-mile track. That’s an average speed of just under 40 mph on nothing but solar energy. Not bad!
In the MOV (Multi-Occupant Vehicle) class, Polytechnique Montréal is narrowly ahead of Appalachian State by just 4 laps. At last year’s formula sun race, Polytechnique Montréal took first place overall in this class, and the team hopes to repeat that success. It’s still too early for prediction though, and anything can happen between now and the final day of racing on Saturday.
Congrats to the teams that made it on track today. We look forward to seeing even more out there tomorrow. In the meantime, here are some shots from today via the event’s wonderful photographer Cora Kennedy.
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The numbers are in and they are all bad for Tesla fans – the company sold just 5,000 Cybertruck models in Q4 of 2025, and built some 30% more “other” vehicles than it delivered. It just gets worse and worse, on today’s tension-building episode of Quick Charge!
We’ve also got day 1 coverage of the 2025 Electrek Formula Sun Grand Prix, reports that the Tesla Optimus program is in chaos after its chief engineer jumps ship, and a look ahead at the fresh new Hyundai IONIQ 2 set to bow early next year, thanks to some battery specs from the Kia EV2.
New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.
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Tesla has launched its new Oasis Supercharger, the long-promised EV charging station of the future, with a solar farm and off-grid batteries.
Early in the deployment of the Supercharger network, Tesla promised to add solar arrays and batteries to the Supercharger stations, and CEO Elon Musk even said that most stations would be able to operate off-grid.
While Tesla did add solar and batteries to a few stations, the vast majority of them don’t have their own power system or have only minimal solar canopies.
Back in 2016, I asked Musk about this, and he said that it would now happen as Tesla had the “pieces now in place” with Supercharger V3, Powerpack V2, and SolarCity:
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All of these pieces have been in place for years, and Tesla has now discontinued the Powerpack in favor of the Megapack. The Supercharger network is also transitioning to V4 stations.
Yet, solar and battery deployment haven’t accelerated much in the decade since Musk made that comment, but it is finally happening.
Tesla has now unveiled the project and turned on most of the Supercharger stalls:
The project consists of 168 chargers, with half of them currently operational, making it one of the largest Supercharger stations in the world. However, that’s not even the most notable aspect of it.
The station is equipped with 11 MW of ground-mounted solar panels and canopies, spanning 30 acres of land, and 10 Tesla Megapacks with a total energy storage capacity of 39 MWh.
It can be operated off-grid, which is the case right now, according to Tesla.
With off-grid operations, Tesla was about to bring 84 stalls online just in time for the Fourth of July travel weekend. The rest of the stalls and a lounge are going to open later this year.
Electrek’s Take
This is awesome. A bit late, but awesome. This is what charging stations should be like: fully powered by renewable energy.
Unfortunately, it will be much harder to open those stations in the future due to legislation that Trump and the Republican Party have just passed, which removes incentives for solar and energy storage, adds taxes on them, and removes incentives to build batteries – all things that have helped Tesla considerably over the last few years.
The US is likely going to have a few tough years for EV adoption and renewable energy deployment.
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