Umicore has announced it is halting investment in its planned $2.76 billion battery materials manufacturing facility in eastern Ontario, citing reduced growth projections for the electric vehicle sector.
The global materials giant had previously secured substantial support for the project, with the federal government committing $551.3 million and the Ontario government pledging up to $424.6 million to cover capital costs. The facility was intended to produce cathode active materials and precursor cathode active materials, with an anticipated start of production in 2026 and the creation of approximately 600 jobs.
In light of the shifting market dynamics, Umicore is currently reassessing its battery materials strategy and expects to provide an update on its plans in the first quarter of the coming year.