Belgium-based materials technology giant, Umicore, is set to expand its investment in South Korea with the introduction of a new production line for high lithium manganese (HLM) cathode materials at its Cheonan plant. Expected to kick off mass production by 2026, the initiative underlines Umicore's commitment to advancing next-generation cathode materials for electric vehicles (EVs). HLM cathode material, recognized for its 30% higher energy density than lithium iron phosphate cathode materials and recyclability, is poised to cater to the mid- to low-end EV market.
In a parallel development, Umicore is forging a significant alliance with the Volkswagen automotive group under the Ionway brand. Together, they are embarking on a project to construct a factory for electric car battery components in the port of Gijón, Spain. The proposed facility, situated in the expansion area of El Musel, is earmarked for a substantial investment of about one billion Euros. This venture is anticipated to create between 250 and 300 jobs in its initial phase, with an investment of around 450 million Euros.
Ionway, a collaboration between Umicore and PowerCo, a Volkswagen Group company, reflects the partners' global ambition to lead in the electric vehicle battery sector. This strategic move not only signifies Umicore's expansion into the lithium business but also marks a crucial step in Volkswagen's drive towards electrification.
The project's realization hinges on securing a concession for the requested 45.5 hectares in El Musel's extension area, a decision awaited from the port's authority. Amidst legal challenges from Duro Felguera, which contests the land allocation, the Port Authority's board is poised to reject the appeal, potentially paving the way for the Ionway factory's commencement.
While the final confirmation of the investment depends on various market, operational, and financial considerations, the engagement with multiple administrations is advancing steadily. Success of the project is contingent upon acquiring public support, including potential funding from the PERTE initiative for electric and connected vehicles.
