Ionway, a joint venture between PowerCo (a Volkswagen group entity) and Umicore (a Belgian materials firm), has selected Poland as the site for its inaugural factory. Ionway specializes in

materials production for electric vehicle (EV) batteries and will construct a €1.7 billion (7.75 billion zloty) facility to manufacture cathode active materials (CAM) used in EV batteries. This investment represents the largest-ever commitment to the Opole province and is situated in the southwestern town of Nysa.

Deputy Defense Minister Marcin Ociepa, hailing from the region, remarked, "This is a landmark investment for the entire Opole region and an opportunity for further regional development." The Polish government is contributing €350 million in grants for the project, as indicated by Umicore.

"We are thankful for the Polish government’s support," stated Umicore's CEO, Mathias Miedreich. "The strategic location of the [new] battery materials plant in Poland, right next to Umicore’s own [existing] battery materials plant, will further enable the transition to electric driving that is truly sustainable."

Ionway's choice of Nysa was based on the availability of a skilled workforce and access to renewable energy sources. The company intends for the plant to operate entirely on renewables, striving to achieve carbon neutrality.

Umicore's existing cathode active materials plant in Radzikowice, located adjacent to Nysa, has been powered entirely by green energy since its inauguration last year, according to Interia, a news website.

Construction of the planned factory will commence once the necessary permits are obtained, with expectations of creating approximately 900 new jobs.

Development Minister Walderma Buda expressed, "The investment by Umicore and PowerCo is the best proof that Poland is one of the leading countries in terms of attracting the largest and most innovative investments. We are also pleased that this is an investment supporting Poland’s sustainable economic and energy transformation towards zero emissions."

Despite being home to one of Europe's most polluting energy sectors, with around 70% of electricity generated from coal, Poland is actively seeking to transition towards renewables and nuclear energy, targeting three-quarters of power generation from these sources by 2040.

Poland has attracted significant investments in the EV sector, including Mercedes-Benz's plans for a €1 billion factory dedicated to electric vans. Volvo is establishing a technology hub in Kraków, aligned with its shift toward all-electric production. South Korean battery parts producer SK Nexilis is building a 3 billion zloty factory in Stalowa Wola.

However, the Polish government has faced criticism for not meeting its EV adoption targets, with only 84,947 electric vehicles on the road as of August 2023, far from its goal of one million by 2025. The government's plans to create a domestically-produced electric car also lag considerably, with a recent state audit report indicating a 94% delay in progress. Additionally, Poland was the sole EU member state to vote against a proposal to ban the sale of new petrol and diesel cars from 2035. Photo by Vanellus Foto, Wikimedia commons.