Umicore: Intends to build a 35 GWh battery material factory in Canada

On October 19, Umicore announced in its official micro-blog that the company is building a 35 GWh equivalent battery material production plant in Loyalist, Ontario, Canada, to serve the North American electric vehicle (EV) battery market. In view of the importance of the plant to the North American electric vehicle supply chain and the enhancement of the electric vehicle battery ecosystem, Umicore will receive substantial financial support from the Canadian and Ontario governments for this key project. Mathias Miedreich, CEO

of Umicore, said, Umicore's investment in Canada marks the last step in the global production of sustainable electric vehicle battery materials and the localization of the value chain. Our regionally integrated battery value chain has been put in place in Europe and Asia to provide our customers around the world with these key decarbonized battery material supply guarantees to help them make a rapid transition to clean electric mobility.

The Umicore facility will combine the production of both the precursor (pCAM) and the positive active material (CAM, the most critical component of rechargeable battery performance) to complete the missing link in the North American electric vehicle battery value chain from natural resources to electric vehicle. The plant will be fully capable of producing state-of-the-art high-Ni technologies [1] and will be ready for future battery chemistry processes, including Mn-rich HLM (Li-rich Mn-base) and solid-state batteries.

The investment is part of Umicore's previously announced plans. This investment amounts to € 1.27 billion by 2026 ( €690 million after non-refundable capex). The

engineering and permitting process is currently underway. Umicore expects to begin construction on the 141-hectare (350-acre) site later this year. The plant is expected to be commissioned by the end of 2025 and gradually increase production from 2026.

Canada and Ontario provide all the necessary conditions for Umicore to establish a sustainable supply chain for battery materials in North America. Located about 25 kilometers (15 miles) from Kingston, the plant in Rojelest will be at the heart of Canada's automotive technology cluster, and its location offers important advantages in terms of proximity to customers, a highly skilled workforce, critical infrastructure, and renewable energy.

Canadian Prime Minister Trudeau and Umicore CEO Mathias Miedreich (right) attended the event

together. Recently, Umicore reached a final agreement with the Canadian and Ontario governments on its direct financial support. The

government will strongly support the project because the battery materials plant will ensure that Canada and Ontario have a leading position in North America in this high-value link of the electric vehicle supply chain. They are prepared to jointly contribute 1.27 billion euros, including 580 million euros in non-refundable capital expenditure grants. The investment represents Umicore's first phase decision on a potential larger-scale project, with a second phase that could add up to 500 million euros by the end of the decade. At that time, Umicore will receive an additional non-refundable capital expenditure grant of nearly 100 million euros and an additional tax relief estimated at about 100 million euros.