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Press release umicore Regulated - Inside information 08 December 2021 - 08:00 am CET Umicore and Volkswagen AG to create European EV battery materials Joint Venture Umicore and Volkswagen AG plan to establish a joint venture to build up precursor and cathode material production capacities in Europe to supply Volkswagen AG's European battery cell production , making a considerable contribution to the region's transition towards cleaner mobility . This partnership will be the first of its kind in the European automotive market . It will help achieve the ambitions of the European Green Deal , including the establishment of a sustainable battery supply chain , and is a strong signal for the ongoing roll - out of innovative battery cell technologies and capabilities in the region . The intention is to gradually ramp up the JV's precursor and cathode material production capacity . This would start in 2025 with an initial annual production of 20 GWh for Volkswagen AG's plant in Salzgitter , Germany , and should grow to an annual production capacity of up to 160 GWh by the end of the decade . This compares to an annual production capacity capable of powering about 2.2 million full electric vehicles ( EVS ) . At the same time , next to the intended JV , Umicore will continue to steadfastly develop its technological and production capabilities to serve other customers and regions . " As a leader in clean mobility materials , we are committed to support our automotive and battery - cell customers with their electrification strategies . We are very pleased to partner with Volkswagen in this unique joint venture and will bring in our long - standing and proven expertise in battery materials , as well as our strong commitment and solutions to today's sustainability challenges , " said Mathias Miedreich , CEO of Umicore . " The complementarity of our extensive technology , innovation and industrial knowhow , and shared sustainability convictions will provide a strong framework for the JV and will give us a considerable first - mover advantage . " Thomas Schmall , Member of the Board of Management of Volkswagen Group for Technology and CEO of Volkswagen Group Components : " Volkswagen is implementing its battery strategy very consistently and at a high pace . The Volkswagen unified cell must be at the forefront of performance , costs and sustainability right from the start . Teaming up with Umicore enables us to establish a state - of - the - art supply chain in Europe as we share common values such as responsible sourcing of raw materials , as well as closed - loop thinking . " 20211208_JV_EN The partnership's significant scale will provide secure and cost - competitive supplies of innovative , sustainably sourced and tailored high - performance cathode materials for Volkswagen AG's ambitious unified cell strategy . It provides Umicore secured access to an important part of the European demand for Umicore PUBLIC Document Page 1 of 3