July 12, 2022
Umicore recently announced its plans to construct a manufacturing facility for cathode active battery materials (CAM) and their precursor materials (pCAM) in Ontario. For Umicore this investment represents the final step in establishing a truly global production presence with battery material value chains that are regionally fully integrated to support its customers in their fast transformation towards sustainable electric mobility.
The planned facility would be the first of its kind in North America, combining cathode and precursor materials manufacturing at a large industrial scale, and thereby completing the missing link in Canada’s battery supply chain, from natural resources to electric mobility. Umicore is in negotiations with several potential customers for production contracts in North America. This will form the basis for Umicore's investment decision and underlines its commitment to value creative returns.
On July 13, Umicore and the Government of Canada signed a Memorandum of Understanding (MoU) to finalize the support application of the project under the Strategic Innovation Fund. This MoU follows a recently signed agreement with Loyalist Township to secure a plot of land of about 350 acres in Loyalist, Ont. The location, in the center of Canada’s automotive eco-system, offers critical advantages such as access to a highly skilled workforce, key infrastructure and renewable energy, which the new plant will be running on 100 per cent from the start of production.
“Canada and the Ontario province have all it takes for Umicore to establish a full-fledged, sustainable supply chain for battery materials, all the way from the mine to the end-market of electric vehicles,” said Mathias Miedreich, CEO of Umicore. “Once the key customer contracts are in place, this expansion in North America would complete our global rollout of regional supply chains for our automotive and battery cell customers to now three continents.”
Umicore is targeting to start construction in 2023 and operations at the end of 2025 with the potential to reach by the end of the decade an annual production capacity capable of powering approximately one million EVs.
“This announcement is about creating jobs, cutting pollution, and building a stronger, cleaner economy for Canadians. Umicore’s intention to establish its new facility in Loyalist Township is another major step forward as we make Canada a global leader in producing electric vehicles—from minerals to manufacturing. With over 1,000 good jobs to build the plant, and hundreds of permanent positions once it is up and running, this new facility will play an important role in Canada’s clean automotive sector well into the future,” said Justin Trudeau, Prime Minister of Canada.
Umicore will also explore opportunities for metals refining and battery recycling in North America, to offer its customers in the region secure and circular access to critical battery materials and - in line with its earlier announced ambition to establish a regional presence in North America—across the CAM value chain.
