(Reuters) – Volkswagen’s battery unit PowerCo has formed a joint venture with Belgium’s Umicore for the production of precursor and cathode material in Europe, jointly investing 3 billion euros ($2.89 billion), the companies said on Monday.

Umicore will supply PowerCo’s European battery cell factories from 2025 onwards with enough material for batteries powering around 2.2 million fully electric vehicles annually, the companies said.

($1 = 1.0379 euros)

(Reporting by Victoria Waldersee, editing by Rachel More)