Umicore confirms expansion of EV battery materials production footprint with CAM and pCAM plant in Ontario
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, 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 (nickel content of 90% and more) 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.
Following Umicore’s recent entry in the North American market, its order book in the Battery Materials business currently stands at 190 GWh contracted CAM volumes for 2027 and 270 GWh for 2030. It is well diversified across several battery and car manufacturers in Asia, Europe and North America and covers entry, volume and premium platforms for a wide variety of brands and car models.