Umicore ground breaking, October 2023
After breaking ground just over 9 months ago, Umicore has paused construction on its electric vehicle (EV) battery plan in Loyalist Township.
They’ve shared they’re slowing down construction due to the steep decline in customer demand.
CEO Bart Sap shared in a statement, “In recent months, short- and medium-term growth projections for the electric vehicles market have been scaled back substantially, significantly affecting Umicore’s Battery Materials business. Today, we share the elements of how we are adjusting to this new reality. The large impairment of our Battery Materials assets is painful and reflects the changed situation as we see it today.”
They shared in the coming months, they will be carefully reviewing their Battery Materials activities, “with energy and an open mind,” working closely with customers and partners.
“We are shaping a new way forward and will share the outcomes during a Capital Markets Day in Q1 2025. In these challenging times, we must focus on what we need to adjust while not forgetting the strong fundamentals on which we stand.”
This project was first announced in 2022 by Prime Minister Justin Trudeau. Then ground was broken October 2023.
Once completed, Umicore was to establish 600 job positions and provide an extra 700 co-op opportunities for students in the region.
Written by Emily Chatwood