$2.1B EV battery materials plant proceeding in Ontario
Crews are expected to begin work this year.
Umicore officials break ground on its $2.1B facility in Loyalist, Ont. – Umicore
Key Takeaways:
- Umicore is proceeding with the first phase of the project, which is worth $2.1 billion.
- The facility will manufacture cathode active materials (CAM) and precursor cathode active materials (pCAM), critical components for producing electric vehicle (EV) batteries.
- Together, the federal government and Ontario are contributing $975 million for the project.
- Work is expected to begin later this year and commissioning is expected to occur in 2025.
The Whole Story:
Umicore is proceeding with the construction of a $2.1 billion battery materials production plant in Ontario.
The full $2.7 billion project will be executed in multiple stages. Umicore announced it will proceed with the first $2.1 billion stage, of which $1.8 billion is capital expenditures. It will create a battery materials production capacity of 35 GWh annually.
Umicore stated that combining the production of precursor (pCAM) and CAM, the most critical components for a rechargeable battery’s performance, the 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 advanced high-nickel technologies and is prepared for future battery chemistries, including manganese-rich HLM and solid-state batteries.
The engineering and permitting process is ongoing and Umicore expects to begin construction on the 350-acre plot of land later this year. The plant is expected to be commissioned at the end of 2025.
The project will receive substantial support from the government. Based on the full scope of the envisioned project, the Government of Canada is contributing up to $551.3 million, while Ontario is supporting the project with up to $424.6 million.
“Umicore is proud and delighted with the unwavering support and financial backing of Canada and Ontario. Their readiness to co-fund our investment coupled with the announcement of our first customer contract for the Loyalist plant mean we can forge ahead with the construction,” said Mathias Miedreich, CEO of Umicore. “We are committed to being a reliable transformation partner for the automotive and battery industry and a trustworthy neighbor for the communities in Ontario.”
The project site is located at about 25 km from Kingston in Loyalist . Umicore says this puts it at the heart of Canada’s automotive technology cluster. They added that Its location offers critical advantages such as customer proximity, access to a highly skilled workforce, key infrastructure and renewable energy.
The company stated that 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.
“Umicore’s investment represents another strong vote of confidence in our rapidly growing electric vehicle and battery supply chain,” said Ontario Premier Doug Ford. “Together, with our government, industry and labour partners, we’re putting our auto sector back on the map, attracting billions of dollars in new investments, creating thousands of new good-paying jobs and ensuring the cars of the future will be made in Ontario, from start to finish.”
