Poland solidifies role as major EV battery hub

author: FutureCar Staff    

Batteries for electric vehicles (EVs) and their components are a significant sector in the Polish manufacturing industry. The upcoming parliamentary election in Poland on October 15 is expected to be closely contested between the ruling Law and Justice party (PiS) and the largest opposition group, Civic Coalition. It is unlikely that either party will secure a majority, leading to coalition talks or even a second election.

Despite the political uncertainty, major investors in Poland remain unfazed. Volkswagen recently announced its plans to construct a cathode active material (CAM) production plant in Nysa, located in the southeast of the country near the Czech border. CAMs are crucial chemicals used in rechargeable lithium-ion batteries for EVs and renewable energy storage.

The new plant, developed under the Ionway brand as a joint venture between Volkswagen's PowerCo and Belgian materials firm Umicore, will be built adjacent to an existing Umicore CAM plant. The Polish government is strongly supporting this investment and has offered Ionway 350 million euros in cash grants under the Temporary Crisis and Transition Framework (TCTF).

The strategic location of the new plant, close to Umicore's battery materials plant, will facilitate the transition to sustainable electric driving, according to Mathias Miedreich, CEO of Umicore. The availability of skilled labor, renewable energy sources, and access to raw materials from Umicore's refining operations in Finland were also cited as reasons for selecting Nysa.

The site preparation, engineering, and permitting are currently underway, and production is expected to start once construction is completed. Jörg Teichmann, Chief Purchasing Officer of PowerCo, believes that Ionway provides both companies with a first-mover advantage in the rapidly growing e-mobility market in Europe.

Poland's automotive industry, including batteries for EVs, contributes over 11% to the country's total production value and is the second-largest sector after the food industry. Poland is already home to LG Energy's car battery factory in Biskupice Podgórne, and other plants by SK Nexilis and Mercedes-Benz are currently being constructed.

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FutureCar Staff