Adam Prudhomme
Editor
Construction on an electric vehicle battery plant in Loyalist Township has come to a sudden standstill.
Citing a steep decline in customer demand, Umicore Rechargeable Battery Materials Inc. announced Friday it is slowing down on the construction project that had just broken ground in 2023.
Located at the corner of Taylor Kidd and County Rd 4, the plant was scheduled to begin production in 2025. Friday’s announcement casts heavy doubt over the future of the project.
“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,” Bart Sap, Umicore’s CEO, said in a release. “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. In the coming months, we will continue to thoroughly reassess our Battery Materials activities, with energy and an open mind, always in close alignment with our 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.”
First announced in 2022 during a press conference held at Queen’s University featuring Prime Minister Justin Trudeau, the project was expected to cost $2.78 billion and general 600 jobs for the region. The federal government was to invest $551.3 million while the province was to pay $424.6 million.