Volkswagen teams up with Umicore on battery materials
Volkswagen (ETR:VOWG_p) announced on Monday a $2.9 billion battery parts joint venture with Belgian materials firm Umicore, becoming the latest European automaker to bring battery supplies closer to home in the shift towards electric vehicles.
While raw materials – among them lithium, cobalt, nickel and manganese – will still be largely sourced from across the world, cathode production for batteries will take place in Europe under the joint venture, most likely at Umicore’s Poland plant.
The venture – between Umicore and Volkswagen’s battery unit PowerCo – also plan to collaborate on recycling metals from battery materials, the firms said, without giving a timeframe.
Europe’s automakers are scrambling to secure stakes in the growing number of plants on the continent turning raw materials into batteries as political pressure grows to bring the supply chain, currently dominated by Asian players, closer to home.
Volkswagen is aiming for 70% of its sales in Europe to be fully electric vehicles by 2030, and is increasingly trying to fence in its supply chains by region to protect them from geopolitical tensions and reduce transport costs.
But Europe’s battery industry is still in its infancy, with attempts to mine raw material in countries from Germany to Portugal held up by red tape and recycling facilities unable to develop at scale without the raw material on hand.
VOLKSWAGEN AG Technical Analysis: Daily Chart
In the daily charts, VOLKSWAGEN AG is trading in an up channel. VOLKSWAGEN AG is currently trading below all SMA.
RSI is in selling zone which indicates bearishness. MACD is currently above zero which indicates bullishness.
Its immediate support is 181.84 & the resistance level is at 192.80.
VOLKSWAGEN AG will trade in an up channel until there is trend reversal.
How to Trade VOLKSWAGEN AG this Week:
VOLKSWAGEN AG will follow the downtrend after the trend reversal. So, remain bearish on VOLKSWAGEN AG.