Poland solidifies role as major EV battery hub with Ionway's latest investment

author: FutureCar Staff    

Batteries for electric vehicles (EVs) and their components are an increasingly important sector in Polish manufacturing. Poland is facing a crucial parliamentary election on October 15, with the ruling Law and Justice party (PiS) and the largest opposition grouping, Civic Coalition, running neck and neck according to recent opinion polls. Neither party is expected to receive enough votes for a majority, making coalition talks and even a second election likely.

Despite the political uncertainty, major investors in the country remain unfazed. Volkswagen, the latest global giant to commit to Poland, announced on October 7 that it plans to build a cathode active material (CAM) production plant in Nysa, close to the Czech border. CAMs are high purity chemicals used in rechargeable lithium-ion batteries for EVs and renewable energy storage.

The plant will be a joint venture between Volkswagen's PowerCo and Belgian materials firm Umicore, developed under the Ionway brand. It is part of a trend among European automotive companies to bring more of the EV production process closer to home. The new plant will be constructed next to an existing Umicore CAM plant.

The Polish government is strongly supporting the investment in Nysa, which is expected to create around 900 industry jobs by the end of the decade. Ionway has been offered 350 million euros in cash grants under the Temporary Crisis and Transition Framework (TCTF), as part of a total investment of up to 1.7 billion euros.

The strategic location of the joint venture's battery materials plant in Poland, alongside Umicore's own battery materials plant, is seen as a key factor in enabling the transition to sustainable electric driving, according to Umicore CEO Mathias Miedreich. The availability of skilled labor and renewable energy sources in Nysa, as well as access to Umicore's CAM know-how and raw materials, were also cited as reasons for selecting the location.

Preparation of the site, engineering, and permitting are currently underway, and production at the plant is expected to start once construction is completed. Jörg Teichmann, Chief Purchasing Officer of PowerCo, believes that Ionway gives both PowerCo and Umicore a significant advantage in the fast-growing e-mobility market in Europe.

The Polish automotive industry, including batteries for EVs and their components, accounts for more than 11% of the country's total production value, according to the US International Trade Administration. Poland is already home to the largest car battery factory in Europe, LG Energy's plant in Biskupice Podgórne near Wrocław, and there are other battery plants under construction by SK Nexilis and Mercedes-Benz.

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FutureCar Staff