Ionway Delays Decision on Battery Components Plant in Gijón Amid Market Uncertainty
The future of Ionway's planned battery components plant in Gijón remains uncertain. Ionway, a joint venture between PowerCo (a Volkswagen subsidiary) and Umicore, confirmed to EL COMERCIO that the selection of the plant's location has been postponed. A spokeswoman for Umicore explained that this delay would allow the company to thoroughly evaluate all aspects of the investment, with the timing of the decision depending on the market's evolution.
Despite the recent authorization of the environmental impact statement by the Principality of Asturias, Ionway has yet to decide whether to proceed with the project at El Musel's expansion site. The initiative was deemed "strategic" by the Principality for its potential to generate industrial activity and quality employment. However, the final decision from Ionway remains pending, as highlighted by the Minister of Ecological Transition, Nieves Roqueñí.
Ionway had reserved over 450,000 square meters at the Romualdo Alvargonzález dock. The administrative process has progressed, with the environmental impact statement approved, but the integrated environmental authorization is still pending, a necessary step for obtaining the building permit and commencing activities. Bureaucracy does not appear to be the issue; rather, the challenge lies in the current weakness of the electric vehicle market. This market slowdown prompted Umicore to announce in May that it would reassess its investments.
Company sources have stated that "the commitment with Ionway is not under review," but the poor market conditions have caused a pause in the initiative, which would require an investment of 1.47 billion euros if all planned phases were implemented. The initial budget for constructing a plant to manufacture precursors for active cathode materials (pCAM), essential for enhancing lithium battery performance, is estimated at 477 million euros. The project outlines a phased development of pCAM production facilities, with each phase potentially generating 10,000 tons per year, based on production needs.
