Umicore Ground Breaking, Oct. 2023 - Photo by Emily Chatwood / MBC News
Umicore’s decision to suspend construction of its planned battery-materials plant in Loyalist Township is putting new focus on the company’s global battery strategy.
Ad Hock News reports the Belgian materials company had planned to invest about $2.76 billion in the Ontario project, which was expected to create about 600 jobs. The federal government had committed up to $551 million, while Ontario had offered up to $425 million in support.
Umicore said it had not drawn on the combined government incentives when the project was suspended.
The decision comes as investment in Canada’s electric-vehicle sector has slowed and Umicore reviews its global battery business.
Umicore shares closed at 21.66 euros on the Euronext Brussels exchange Friday, down 2.43 per cent from the previous trading day.
The company continues to maintain its 2026 financial guidance, while facing volatility in metals prices and cyclical demand in automotive and electronics markets.
The Loyalist decision allows Umicore to avoid immediate spending on the major project as it reassesses its growth plans.
