Cheaper battery raw materials are aimed at lowering the prices of e-cars at VW

Electric cars are still too expensive for many people to purchase. VW wants to change that. Cheaper materials for the expensive batteries should help. A new joint venture is now starting its activities: Ionway.

The battery division of the Volkswagen Group and the Belgian materials technology group Umicore are putting their new joint venture Ionway into operation. Under this company name, the joint venture will in the future supply the European battery cell factories of VW subsidiary PowerCo with cheap materials for the production of batteries, VW and Umicore announced. This should also lower prices for electric cars.

“Together with our reliable partner Umicore, we purchase our own key materials for cell production at favorable conditions,” PowerCo boss Frank Blome said in the statement. “The safe access allows PowerCo to supply the Volkswagen Group with competitively priced battery cells for years to come. This means that the Group’s brands can offer their customers attractive, affordable electric vehicles.”

Materials for 2.2 million batteries per year

The new joint venture, based in Brussels, is expected to supply materials for 2.2 million electric cars per year, covering much of the needs of VW’s planned battery factories in Europe. VW and Umicore announced the project a year ago.

Both partners want to invest three billion euros by the end of the decade. The new joint venture is headed by former Umicore manager Thomas Jansseune, and former PowerCo man Achim Holzer has been appointed as head of finance.

VW plans six of its own battery cell factories in Europe by 2030. The first location is currently being built in Salzgitter, the next one will be built in Spain near Valencia. From 2026, the batteries for the entry-level electric car planned by VW will be built there. (sda/awp/dpa)