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 a growing sector in Polish manufacturing. As Poland prepares for a crucial parliamentary election on October 15, both the ruling Law and Justice party (PiS) and the largest opposition group, Civic Coalition, are running neck and neck in the latest opinion polls. It is unlikely that either party will secure a majority, leading to coalition talks and the possibility of a second election. However, major investors in the country, such as Volkswagen, remain unfazed.

Volkswagen recently announced its plans to construct a cathode active material (CAM) production plant in Nysa, Poland. 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 will be located next to an existing Umicore CAM plant, bringing the EV production process closer to home for European automotive firms.

The Polish government is fully supporting the investment in Nysa, offering Ionway 350 million euros in cash grants under the Temporary Crisis and Transition Framework (TCTF). This investment is expected to create around 900 industry jobs by the end of the decade. The TCTF aims to support sectors crucial for the transition to a net-zero economy in line with the Green Deal Industrial Plan.

The strategic location of the joint venture's battery materials plant in Poland, next to Umicore's own plant, is seen as a significant advantage for the transition to sustainable electric driving. Umicore's CEO, Mathias Miedreich, highlights the availability of skilled labor, renewable energy sources, and access to raw materials as additional reasons for selecting Nysa.

The site preparation, engineering, and permitting for the plant are currently underway, with production expected to start after construction is completed. Jörg Teichmann, Chief Purchasing Officer of PowerCo, believes that Ionway provides a first-mover advantage in the rapidly growing e-mobility market in Europe. The Polish manufacturing sector is increasingly focused on batteries for EVs, with LG Energy's plant in Biskupice Podgórne near Wrocław currently being the largest car battery factory in Europe.

According to the US International Trade Administration, Poland's automotive industry accounts for over 11% of the country's total production value, second only to the food industry. Emerging Europe, as an independent platform, provides free access to news and information. They are not affiliated with any political party or business organization and aim to spread awareness about the region.

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FutureCar Staff