Umicore Delays $2 Billion Ontario EV Battery Materials Plant Amid Slow Consumer Adoption

Umicore, a Belgium-based company specializing in circular materials technology across material science, chemistry, and metallurgy, has postponed its plans to build a CAD2.8 billion ($2 billion) electric vehicle battery materials plant in Ontario. The decision comes as consumer adoption of electric vehicles falls short of expectations.

In October, Umicore confirmed its intention to construct the cathode materials plant. However, in its half-year review released on Friday, the company announced the delay of this investment, pending further evaluation of the maximum capacity of its current operations.

In June, Umicore began reassessing its global projects due to a slowdown and ongoing reviews of investment plans by electric vehicle manufacturers. This reevaluation is in response to changing market dynamics, including slower-than-anticipated EV adoption.

The Ontario facility was originally expected to open by 2026, producing battery materials for approximately 800,000 electric vehicles annually. The Canadian government had proposed an investment of about CAD551.3 million ($397 million) in the factory, while the Ontario government had pledged up to CAD424.6 million ($306 million).

This development underscores the challenges faced by the EV industry in meeting projected growth targets and the need for companies to adapt their strategies in response to market realities.

1 Canadian Dollar equals 0.72 United States Dollar.