Umicore announces a $1.5B investment to build manufacturing plant in eastern Ontario
by CM Staff
At full production, the plant will produce annual cathode material volumes sufficient to manufacture batteries for one million battery-electric vehicles.
KINGSTON — Umicore plans to make a $1.5 billion investment to build an industrial scale cathode and precursor materials manufacturing plant, in eastern Ontario.
This investment would support Ontario’s vision of building an end-to-end electric vehicle (EV) supply chain in the province and becoming a North American hub for building the cars of the future. Building the facility will provide employment for around 1,000 people in the construction phase and employment for several hundred in operations.
Umicore N.V., a multinational circular materials technology company based in Belgium, will build a near-carbon-neutral facility in Loyalist Township to manufacture cathode active materials (CAM) and precursor cathode active materials (pCAM). The components are critical in the production of EV batteries.
Cathodes account for about 50 per cent of the value of an EV battery and contain key critical minerals such as nickel, cobalt, manganese, and lithium. This investment in eastern Ontario would further connect Northern Ontario’s mineral sector to EV manufacturing in the south. Each component of the battery supply chain plays an important and interconnected role in the production of EVs.
“Today is another perfect example that our plan to rebuild Ontario’s auto industry is gaining speed and will deliver huge wins for communities,” said Premier Doug Ford. “Ontario has everything it needs, up and down our homegrown supply chain, to remain and strengthen its position as a North American auto manufacturing powerhouse. Umicore plans to bring this part of the EV supply chain to Ontario which will continue to transform our auto sector and create good jobs.”
At full production, the plant will produce annual cathode material volumes sufficient to manufacture batteries for one million battery-electric vehicles – almost 20 per cent of all North American EV production at the end of the decade. Umicore’s plant will leverage Ontario’s clean electricity system, that was more than 90 per cent emissions-free in 2021.
The Umicore plant would combine production of precursor cathode active materials (pCAM) and cathode active materials at the same facility. Spanning about 350 acres, construction is targeted to begin in 2023 with operations planned for the end of 2025.
“This important investment by Umicore will turn Ontario into a North American leader in this high-value segment of the EV supply chain and further connect Northern Ontario’s mineral sector to EV manufacturing in the south,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “With recent success attracting major investments to the province, our government is staking Ontario’s claim to developing and building the batteries that will power vehicles of the future.”