By Kim Richters
Umicore SA and Volkswagen AG are setting up a joint venture to supply the car maker's European battery-cell production with cathode materials, the companies said on Wednesday.
The deal "aims at jointly building up precursor and cathode material production capacities in Europe, and sustainably securing responsibly sourced raw material capacities at competitive prices," said Volkswagen.
The companies plan to ramp up the joint venture's production capacity gradually, which will start in 2025 with initial annual production of 20 gigawatt hours for the auto maker's plant in Salzgitter, Germany.
Volkswagen also said Wednesday that it agreed to additional strategic partnerships related to battery technology. The car maker said it is investing in battery startup 24M Technologies Inc. and has agreed with Vulcan Energy Resources Ltd. on the supply of CO2-neutral lithium from the Upper Rhine Valley in Germany.
Volkswagen didn't disclose financial terms of the deals.
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(END) Dow Jones Newswires