German automaker Volkswagen AG’s PowerCo global battery manufacturing business, which it plans to plan to spin-off in an initial public offering in 2023, is facing the impact of supply chain challenges, Bloomberg reported.
PowerCo is scouting sources for securing raw materials for the plant amid rising input prices and logistical challenges, the report said, citing Kai Alexander Mueller,  CFO of the unit.
The report noted that the company plans to tie up with Belgium-based miner Umicore SA for sourcing cathode materials, Robert Bosch for machinery, and Vulcan Energy Resources Limited for battery-grade lithium hydroxide.
PowerCo began work on its first European plant last week and also disclosed plans to invest over 20 billion euros ($20.06 billion) in five proposed battery manufacturing plants….