Belgian materials technology and recycling group Umicore has announced it will review and suspend its investment in a planned cathode material factory in Loyalist, Ontario, Canada. The construction of the $2.7 billion facility, initially scheduled to commence operations by late 2025, is on hold pending further evaluation.
Umicore revealed the decision in its half-year report, citing a shift in market conditions. The company stated that it is adjusting its investment plans due to a significant reduction in the demand forecast for its battery materials. As a result, Umicore will focus on utilizing existing production capacities before proceeding with new investments. The Belgian firm has initiated a “thorough review” of its battery materials business, with results expected to be announced at its Capital Markets Day in the first quarter of 2025.
Umicore Unveils State-of-the-Art Facility in Belgium for Solid-State Battery Prototypes
The planned facility was intended to produce cathode materials for approximately one million electric vehicles annually and was expected to benefit from substantial state subsidies. Canadian federal and provincial governments had pledged up to $976 million in support, with up to $551 million from the federal government and up to $425 million from the province.
The BMW Group, a key customer for the Ontario plant, had planned to source cathode materials from the facility for its battery supply chain. In October 2023, BMW announced Umicore as a partner for developing a battery supply chain in North America. The partnership aimed to supply cathode-active materials from Ontario to AESC, BMW’s battery cell partner. BMW is also constructing a battery cell production facility in Florence County, South Carolina, set to begin supplying BMW with cells for new electric models from 2026.
Umicore’s review will also consider opportunities for further customer diversification and potential partnerships across its battery materials value chain.
