Belgian materials technology and recycling company Umicore is reassessing its plans for a cathode material plant in Loyalist, Canada, and is suspending construction investments until further notice. The plant was originally scheduled to start operations by the end of 2025.
The factory, located in the Canadian province of Ontario, was announced by Umicore in mid-2022, with groundbreaking taking place last year. In its half-year report, the company stated it is adjusting its investment plans to the “new market reality.” Specifically, Umicore is halting the construction of the $2.7 billion cathode material plant in Canada. The new North American site in Loyalist was initially projected to achieve an annual production capacity of cathode materials for approximately one million electric vehicles by the end of the decade. Generous government subsidies were expected, with the Canadian federal government pledging up to $551 million and the province up to $425 million.
Umicore cited a significant decline in the demand forecast for its battery materials as the reason for the pause, stating that it plans to fully utilize existing production capacities before making new investments. In light of this, Umicore announced a “thorough review” of its battery materials business. This review’s results will be presented at the company’s Capital Markets Day in the first quarter of 2025. The review will also discuss “further diversification of customers and openness to partnerships across the entire battery materials value chain.”
Source: https://www.electrive.net/2024/07/29/umicore-pausiert-bau-seiner-kathodenmaterial-fabrik-in-kanada/
