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Volkswagen

PowerCo and Umicore Establish IONWAY, a Leading European Battery Materials Joint Venture

Umicore and PowerCo, a battery company backed by Volkswagen Group, have unveiled the name and branding for their groundbreaking collaboration. The joint venture, based in Brussels, aims to be the foremost large-scale producer of CAM and pCAM in Europe and will operate under the name IONWAY. By the end of the decade, both companies expect IONWAY to have an annual production capacity of 160 GWh, equivalent to powering 2.2 million battery-electric vehicles.

IONWAY has been established to supply PowerCo’s European battery cell factories with crucial battery materials, while also fulfilling a significant portion of PowerCo’s EU demand. Additionally, the joint venture will give Umicore secured access to a crucial portion of the European market for EV cathode materials.

This partnership between a European car manufacturer and a premier global CAM producer marks a unique milestone in the production of sustainable battery materials for electric vehicles and a zero-emission future. Both parent companies are strongly committed to expanding the EU’s presence in the e-mobility sector by establishing sustainable, transparent, and regional battery supply chains.

Cathode active materials play a pivotal role in battery performance, as they contribute the most to the overall cost and carbon footprint of the battery. These materials are therefore of strategic importance in the creation of valuable batteries and are critical for a successful transition toward sustainable e-mobility.

IONWAY will leverage the resources and expertise necessary to drive this transition and make sustainable progress accessible to all. The joint venture aims to create a new momentum in high-performance battery technology through a powerful partnership.

Frank Blome, CEO of PowerCo, stated, “Through IONWAY, PowerCo achieves another milestone in our strategy of vertically integrating the battery supply chain. In collaboration with our trusted partner Umicore, we can source our own key cell production materials at competitive prices. This secure access ensures that PowerCo can supply cost-competitive battery cells to Volkswagen Group for years to come, enabling its brands to offer attractive and affordable electric vehicles to customers.”

Mathias Miedreich, CEO of Umicore, said, “IONWAY has a significant head start as a start-up due to our partnership with Volkswagen’s PowerCo and Umicore, key players in the electric mobility transformation. The joint venture will undoubtedly become an industry benchmark in e-mobility, fostering innovation, creating numerous highly skilled jobs, and driving the energy transition.”

Thomas Jansseune, CEO of IONWAY, remarked, “The establishment of IONWAY sends a strong signal for the adoption of battery cell technology in Europe. We believe that this company will play a crucial role in helping the European Union achieve its Green Deal ambitions.”

Thomas Jansseune, who has 22 years of experience at Umicore, including leadership roles in various areas such as venture capital, solid-state batteries, decarbonization, battery recycling, and hydrogen electrolysis, has been appointed as the first CEO of IONWAY. He holds a PhD in Chemical Engineering.

Achim Holzer, who previously served as Head of Value Engineering & Central Purchasing Functions at Volkswagen Group Technology and Head of Value Engineering at AUDI, has joined IONWAY as the CFO. He holds a doctoral degree in economics from the University of Passau.

IONWAY’s logo represents the partnership and close connection between PowerCo and Umicore, with the interlocking circles in the lowercase “i” symbolizing their collaboration in shaping the EV battery industry. The logo’s tagline, “Synergy for Energy,” highlights IONWAY’s role in driving the energy transition. The joint efforts of the two companies are expected to have a substantial impact, and this tagline emphasizes the higher purpose of the joint venture.

To learn more about IONWAY, visit www.ionway.com.

About Umicore
Umicore is a leading circular materials technology group that focuses on application areas where its expertise in materials science, chemistry, and metallurgy can make a significant difference. The group comprises three business groups: Catalysis, Energy & Surface Technologies, and Recycling. Each business group includes market-focused units that offer cutting-edge materials and solutions essential to everyday life.

Umicore’s industrial and commercial operations, as well as its R&D activities, are spread across the globe to best serve its global customer base. In 2022, the group generated revenues (excluding metal) of €4.2 billion and employed over 11,000 people.

About PowerCo
PowerCo SE is the European company that encompasses the Volkswagen Group’s global battery activities. From its base in Salzgitter, Germany, PowerCo manages international factory operations, the development of cell technology, and the vertical integration of the value chain. The company has already identified three gigafactory locations in Salzgitter, Germany; Valencia, Spain; and St. Thomas, Canada. PowerCo plans to establish cell factories with a total capacity of 240 GWh per year by 2030.

Volkswagen

Sustainable and Affordable Batteries: PowerCo Develops “Gamechanger” Technology for Cell Production

PowerCo SE is planning to introduce a completely new manufacturing process in its battery cell production plants in Europe and Northern America. The new technology will significantly boost efficiency and sustainability in volume battery cell production. A subsidiary of Volkswagen Group and based in Salzgitter, Niedersachsen, the battery company aims to industrialize the so-called Dry Coating procedure. The technology allows a decrease in energy consumption of about 30 percent, internal tests have already proven successful. Together with German printing machine specialist Koenig & Bauer AG, PowerCo will further develop and industrialize the Dry Coating procedure.

Thomas Schmall, Group Board Member for Technology at Volkswagen AG and Chairman of the Supervisory Board of PowerCo SE, said, “Technologies like Dry Coating showcase PowerCo’s technological prowess. We have the necessary know-how and the right experts to take cell production to a new level and offer significant cost advantages to our customers. Our objective is to establish an industrial production of sustainable and affordable batteries.”

To achieve this goal, PowerCo and Koenig & Bauer have signed a Joint Development Agreement. Together they will develop a roller press for powder coating electrodes at a large industrial scale. The Dry Coating procedure allows manufacturing electrodes without wet-coating and subsequently drying them at high costs. With the new procedure, the most energy-intensive part of cell manufacturing and the use of chemical solvents are no longer required. PowerCo is already testing and optimizing the technology in a pilot line in one of its laboratories in Northern Germany. As a printing specialist, Koenig & Bauer will develop a machine for the industrial powder coating.

According to PowerCo estimates, the new technology has the potential of saving about 30 percent of energy as well as 15 percent of required floor space, resulting in saving hundreds of millions of Euros each year. Frank Blome, CEO of PowerCo SE, stated, “What the solid-state cell is to the product, Dry Coating is to production – a real game changer. If scaled successfully, it will give us a unique position on the market and definite competitive advantages.”

Powder instead of Slurry: Specifics of the Dry Coating Procedure

The electrodes (cathode and anode) are the “centerpiece” of the battery cell, defining energy density and battery performance. In modern industrial electrode production, the battery materials are mixed with additives and liquid solvents to form a slurry. Afterwards, they are coated onto foils of copper or aluminum, then dried and calendered.

PowerCo’s Dry Coating procedure allows for calendering the powdery basic materials directly onto the foil, similar to a printing procedure. As a result, two of the four process steps in electrode manufacturing become obsolete. The powder coating can be applied onto the foil in an extremely fine and even manner, resulting in a layer that is about as thin as a hair. This guarantees excellent spatial energy density and a long life cycle, while improving the fast-charging ability of the battery.

Breakthrough for Green Batteries

The new technology reduces the required floor space by 15 percent, which has an enormous saving potential. Per building block of a regular Gigafactory with a production capacity of 20 GWh, four parallel coating and drying lines can be saved, equaling an area of 7,000 square meters. As a result, the exterior length of the plant can be reduced by about 100 meters. Not having to operate the energy-intensive drying furnaces and suction systems will save energy equivalent to the annual consumption of 40,000 private households.

Furthermore, the use of chemical solvents that have to be laboriously recycled at high energy costs in silo-like towers outside the plants is no longer necessary.

Koenig & Bauer: Leading Printing Press Manufacturer Worldwide

As the oldest manufacturer of printing presses in the world, Koenig & Bauer offers the industry’s largest product portfolio. The core competency of our partner is the manufacturing of technologically innovative and cost-efficient printing systems. The new processing technology is expected to exit the development stage at the end of 2024. For the time after, exclusive rights have been agreed upon. The contractual details are confidential, and separate agreements have also been made. The estimated start of production is 2026/2027. PowerCo’s Chief Operation Officer Sebastian Wolf stated, “Our plants are designed for quick and easy retrofits. In total, we have anticipated about 30 foreseeable innovations in products and production, so we are able to adjust our plants to all relevant new processes as soon as they enter the market.”

The game changer in battery cell production: Dry Coating

The game changer in battery cell production: Dry Coating