Umicore confirms expansion of its EV battery materials production footprint with CAM and pCAM plant in Ontario, Canada
Umicore is proceeding with the construction of a 35 GWh equivalent battery materials production plant in Loyalist, ON, to serve the North American market for electric vehicle (EV) batteries. Given the significance of the plant for the North American EV supply chain and a strengthened EV battery ecosystem, Umicore will receive substantial financial support from the Governments of Canada and Ontario for this key project.
“Umicore’s investment in Canada represents the final step in creating a truly global production presence with our local-for-local, sustainable EV battery material value chains.
Our regionally-integrated battery value chains, which are already in place in Europe and Asia, give our customers worldwide the security of supply of these critical and decarbonized battery materials in their fast transformation towards clean, electric mobility.”
Mathias Miedreich, CEO of Umicore
Combining the production of precursor (pCAM) and CAM, the most critical components for a rechargeable battery’s performance, Umicore’s production facility will complete the missing link in North America’s EV battery value chain, from natural resources to EVs. The plant will be fully equipped to produce the most advanced high-nickel technologies[1] and is prepared for future battery chemistries, including manganese-rich HLM and solid-state batteries.
The investment is part of Umicore’s previously announced plans and amounts to € 1.27 billion (€ 0.69 billion after non-refundable capital expense grants) until 2026.
The engineering and permitting process is ongoing and Umicore expects to begin construction on the 141-hectare/350-acre plot of land later this year. The plant is expected to be commissioned at the end of 2025 with production ramping up as from 2026.
Canada and the province of Ontario offer all the essentials for Umicore to establish its North American sustainable supply chain for battery materials. Located at about 25 km/15 miles from Kingston, the plant in Loyalist will be at the heart of Canada’s automotive technology cluster. Its location offers critical advantages such as customer proximity, access to a highly skilled workforce, key infrastructure and renewable energy.
As part of Umicore’s objective to reach carbon neutrality for its scope 1 and 2 greenhouse gas emissions by 2035, the plant’s production will be carbon neutral from the start using renewable energy only. During the construction phase, the plant is expected to generate approximately 1,000 employment opportunities, while several hundred highly skilled positions will be created in operations. In addition, the region can anticipate a boost in indirect job opportunities.
Recently, Umicore reached a final agreement on direct financial support from the Government of Canada and the Ontario Government. Both governments are strongly supporting the project as the battery materials factory secures the country’s and province’s position as a North American leader in this high-value segment of the EV supply chain. Their readiness to co-fund the investment of € 1.27 billion translates into € 0.58 billion in non-refundable capital expense grants. This investment represents Umicore’s decision for the first stage of a potentially larger project where the second stage could amount to an additional investment of up to € 500 million by the end of the decade for which Umicore would receive additional non-refundable capital expense grants of close to € 100 million as well as additional tax credits estimated at approximately € 100 million.
“Umicore is proud and delighted with the unwavering support and financial backing of Canada and Ontario. Their readiness to co-fund our investment coupled with the announcement of our first customer contract for the Loyalist plant mean we can forge ahead with the construction,” said Mathias Miedreich, CEO of Umicore. “We are committed to being a reliable transformation partner for the automotive and battery industry and a trustworthy neighbor for the communities in Ontario.”
“Canada has everything to be a global leader in the green economy: access to global markets, a talented workforce, clean energy, world-leading innovation ecosystems and all the critical mineral resources necessary to make EV batteries. This is the reason why Umicore has chosen Canada and Loyalist Township to build its new electric vehicle battery materials plant, one that will produce green battery components. This project will bring great economic benefits to Ontario and create good paying jobs for Canadians, and it is strengthening Canada’s position as the green supplier of choice,” said the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry.
“Umicore’s investment represents another strong vote of confidence in our rapidly growing electric vehicle and battery supply chain. Together, with our government, industry and labour partners, we’re putting our auto sector back on the map, attracting billions of dollars in new investments, creating thousands of new good-paying jobs and ensuring the cars of the future will be made in Ontario, from start to finish.” said the Honourable Doug Ford, Premier of Ontario.
“Umicore’s investment in Loyalist Township will further integrate Eastern Ontario into the province’s thriving end-to-end electric vehicle supply chain. This new investment will create more good-paying jobs for workers in the region and across the province. Our job is far from over as we work to create the right conditions for businesses and workers to succeed. Thank you, Umicore, for reaffirming your trust in Ontario,” said the Honourable Vic Fedeli, Ontario’s Minister of Economic Development, Job Creation and Trade.
Umicore completes global footprint of regionally integrated battery materials value chains
“Today’s investment decision is another example of our approach to only invest based on firm and value-creative contracts,” said Mathias Miedreich CEO of Umicore. “ Umicore will now have an excellent footprint, with its CAM and pCAM plants in Canada, Poland, Korea and China - with the plants in Asia providing flexibility and upside potential on capacity utilization. We will now concentrate on the flawless building and commissioning of the capacity extensions announced to date in Europe and Canada while we remain highly selective in considering additional capacity investments. Moreover, we will be able to capitalize on this production base to capture additional business that would meet our investment criteria, as all our production sites have room for significant, cost-effective capacity expansions.”
Conference call and audio webcast
Mathias Miedreich, CEO of Umicore and Wannes Peferoen, CFO of Umicore, hosted a conference call and audio webcast for analysts and investors on October 17th at 07:30 AM CEST.
Listen to the audio webcast replay
Media gallery
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Live stream recording of Umicore Groundbreaking Ceremony in Loyalist, Canada
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[1] Nickel content of 90% and more
All € references in this document have been calculated at today’s C$/€ exchange rate.