Governments of Canada and Ontario Finalize Agreement with Umicore Rechargeable Battery Materials Canada Inc. for New Plant in Loyalist Township

Umicore’s investment will create over 600 jobs in Eastern Ontario and strengthen Canada’s end-to-end electric vehicle supply chain

The Voice of Canada News: The Government of Canada and the Government of Ontario are welcoming an investment from Umicore Rechargeable Battery Materials Canada Inc. to build a new manufacturing plant in Loyalist Township. The facility will manufacture cathode active materials (CAM) and precursor cathode active materials (pCAM), critical components for producing electric vehicle (EV) batteries.

The envisioned project, with a total eligible cost envelope of up to $2.761 billion, is planned to be executed in multiple stages. Today, Umicore is announcing its firm investment decision for the first stage of $2.1 billion, of which $1.8 billion is capital expenditures, for a battery materials production capacity of 35 GWh annually.

Based on the full scope of the envisioned project, the Government of Canada is supporting Umicore’s project through an investment of up to $551.3 million, while the Government of Ontario is supporting the investment with up to $424.6 million.

“Canada has everything it needs to be a global leader in the green economy: access to global markets, a talented workforce, clean energy, world-leading innovation ecosystems and all the critical mineral resources necessary to make EV batteries,” said The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry. “This is the reason why Umicore has chosen Canada and Loyalist Township as the place to build its new electric vehicle battery materials plant, one that will produce green battery components. This project will bring great economic benefits to Ontario and create well-paying jobs for Canadians, and it is strengthening Canada’s position as the green supplier of choice.”

“Umicore’s investment represents another strong vote of confidence in our rapidly growing electric vehicle and battery supply chain,” said 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.”

The first of its kind in North America, Umicore’s facility will produce CAM and pCAM on a large industrial scale for EV and battery producers in Canada and the United States. In the project’s first stage, the company will create 600 new direct jobs, plus an additional 700 co-op positions for students will be created throughout the project, making Umicore one of the largest private employers in Eastern Ontario.

The full project has the potential to produce enough battery materials to support the production of over 800,000 EVs per year, utilizing Canadian critical minerals, including nickel, lithium and cobalt, and strengthening Canada’s and Ontario’s domestic EV supply chain and batteries ecosystem.

Thanks to Canada’s abundance of clean energy, the facility will be nearly carbon neutral from the start of production.

“Umicore is proud of, and delighted with, the unwavering support and financial backing of Canada and Ontario,” said Mathias Miedreich, CEO of Umicore. “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. We are committed to being a reliable transformation partner for the automotive and battery industry and a trustworthy neighbour for communities in Ontario.”

In the last three years, Canada and Ontario have attracted historic new investments by global automakers, EV battery manufacturers and battery materials suppliers. Canada and Ontario have all the resources and skilled talent to continue leading the charge in the EV revolution, from mining critical minerals to manufacturing batteries and EVs.

Quick Facts

• Umicore is a circular materials technology company that works to reduce harmful emissions, powers the vehicles and technologies of the future, and gives new life to used metals. Its strategy builds on the megatrends of mobility transformation, the growing need for advanced metal materials and the circularity for critical metals.
• The facility will produce 35 GWh worth of battery materials annually in the first stage of the project.
• Cathode active materials and precursor cathode active materials represent roughly 50 per cent of the total value of an EV battery and contain key critical minerals such as nickel, lithium and cobalt.
• Earlier this year, the Government of Canada and the Government of Ontario partnered together on a new pact that will help attract once-in-a-generation projects from EV and battery manufacturers to Canada and Ontario and protect well-paying jobs.
• The Government of Canada has set a target of achieving 100 per cent zero-emission vehicle (ZEV) sales by 2035. Accelerating the ZEV target will support Canada’s commitment to reach net-zero emissions by 2050 and its pledge at the United Nations 2019 Climate Action Summit.
• In December 2022, the Government of Canada released the Critical Minerals Strategy to help advance the development of critical mineral resources and value chains across the country. This strategy will advance our efforts to make Canada a global leader in the responsible, inclusive and sustainable production of critical minerals, from mining to manufacturing.
• Canada’s 2023 budget announced $500 million over 10 years for the Strategic Innovation Fund to support the development and application of clean technologies. The Strategic Innovation Fund will also direct up to $1.5 billion of its existing resources toward projects in clean technologies, critical minerals and industrial transformation.
• In just three years, Ontario has welcomed over $26 billion in automotive and EV-related investments.
• Ontario’s auto supply chain comprises over 700 parts firms; over 500 tool, die, and mold makers; and over 400 connected and autonomous companies. The province is the only place in North America where five major automakers—Honda, Toyota, Ford, General Motors, and Stellantis—build their vehicles.
• Umicore has an existing presence in Ontario: its precious metals business in Markham and its emissions catalyst business in Burlington.

Quotes
“Umicore’s investment in Loyalist Township will further integrate Eastern Ontario into the province’s thriving end-to-end electric vehicle supply chain. This new investment will create more well-paying jobs for workers in the region and across the province. Our job is far from over as we work to create the right conditions for businesses and workers to succeed. Thank you, Umicore, for reaffirming your trust in Ontario.”– The Hon. Vic Fedeli, Ontario’s Minister of Economic Development, Job Creation and Trade