BERLIN (Reuters) - The $2.9 billion battery parts joint venture between Volkswagen (ETR:VOWG_p)'s PowerCo and Belgian materials firm Umicore will be called Ionway, the companies said on Friday.
Through the joint venture, first flagged in December 2021, the companies are joining a number of European automakers that have brought battery supplies closer to home in the shift towards electric vehicles.
Both companies said in a statement on Friday that they aim to expand Ionway's annual production capacity to 160 gigawatt hours (GWh) per year by the end of the decade - enough for 2.2 million vehicles.
"The founding of Ionway sends a strong signal for the rollout of battery cell technology in Europe. We are convinced that this company will provide some important building blocks with which the European Union can implement its Green Deal goals," said Ionway Chief Executive Thomas Jansseune.
Ionway is intended to supply PowerCo's European battery cell factories with key battery materials and cover a large portion of PowerCo's needs in the European Union. In return, Umicore receives secured access to an important part of Europe's demand for cathode materials for electric vehicles.