Umicore Establishment of cathode JV with Volkswagen's PowerCo
Umicore and VW's PowerCo finalised their long-awaited JV agreement, which increases visibility on Umicore's growth trajectory in cathodes as the JV aims to scale up to 160GWh by 2030, which is about 40% of Umicore's overall cathode ambitions by then. Important is also management's comment that the commercial terms negotiated align with Umicore's ROCE ambitions for RBM (12.5% ROCE as from 2026). We maintain our viewpoint that Umicore seems very well placed to play a major role in the electrification of transportation via its cathode business, while Battery Recycling could also become an important growth driver as from the second half of the decade. Taking into account the solid mid to long term growth potential and the discounted valuation, we keep our BUY rating.Umicore is global player in the materials technology and recycling industries. Co. focuses on application areas such as chemistry, materials science, metallurgy and recycling. Co.'s business model comprises four segments: Catalysis, Performance Materials, Energy Materials and Recycling. Catalysis focuses on the abatement of global automotive emissions; Performance Materials focuses on materials that help develop more sophisticated and safer products; Energy Materials produces materials used in the production and storage of clean energy including rechargeable batteries and photovoltaics; and Recycling treats complex waste streams containing precious and other non-ferrous metals.
We are a financial services provider for several types of professional clients, each with distinct needs.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.