Eastern Ontario, Canada Joins Province's EV Revolution with Game-Changing Battery Materials Manufacturing Investment

Umicore to build industrial scale battery materials manufacturing plant in Loyalist Township, first of its kind in North America

KINGSTON, ON, July 13, 2022 /CNW/ - Umicore plans to make a $1.5 billion CAD investment to build a first of its kind industrial scale cathode and precursor materials manufacturing plant, in eastern Ontario, Canada.

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. The investment represents an important step forward on the path towards Ontario's goal to develop a vertically integrated battery supply chain in the province able to support large-scale EV production in North America.

Cathodes account for about 50% of the value of an EV battery and contain key critical minerals such as nickel, cobalt, manganese, and lithium. This historic 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% emissions-free in 2021. Ontario is also developing a clean energy credit (CEC) registry that will enable companies like Umicore to voluntarily purchase CECs to demonstrate that all of their electricity has been sourced from non-emitting resources.

The Umicore plant would be the first of its kind industrial scale facility that combines 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."

This investment in eastern Ontario accelerates the province's 10-year vision for the Driving Prosperity ― The Future of Ontario's Automotive Sector plan. Phase 2 of Driving Prosperity, announced in November 2021, demonstrates the government's ongoing commitment to transforming the province's automotive supply chain to build the cars of the future, including the production of hybrid and fully battery electric vehicles, EV battery and component production, and increasing exports of Ontario-made auto parts and innovations.

This project is also strategically aligned with the government's Critical Minerals Strategy announced in March 2022. This strategy will strengthen Ontario's supply chains, attract new investment in the mining and manufacturing sectors, and build economic development opportunities for Indigenous partners.

"Canada and Ontario have all it takes for Umicore to establish a full-fledged, sustainable supply chain for battery materials, all the way from the mine right to the end-market of electric vehicles. Once the key customer contracts are in place, this expansion in North America would complete our global rollout of regional supply chains for our automotive and battery cell customers to now three continents," said Mathias Miedreich, CEO of Umicore. "Moreover, we are most grateful to the Canadian and Ontario governments for their support and for their readiness to co-fund this planned project. The facility will help Canada and Umicore in their shared objective of achieving a carbon-neutral battery supply chain."

Since 2020, Ontario has attracted nearly $14 billion in transformative automotive manufacturing investments, with upgrades and new technology for facilities across the province. This includes more than $11 billion in electric vehicle (EV) and EV battery investments.

QUOTES

"Today's announcement is about creating jobs, cutting pollution, and building a stronger, cleaner economy for Canadians. Umicore's intention to establish its new facility in Loyalist Township is another major step forward as we make Canada a global leader in producing electric vehicles – from minerals to manufacturing. With over 1,000 good jobs to build the plant, and hundreds of permanent positions once it is up and running, this new facility will play an important role in Canada's clean automotive sector well into the future."

— The Rt. Honourable Justin Trudeau, Prime Minister of Canada

QUICK FACTS

• Umicore is a circular materials technology company headquartered in Belgium. The company is a global leader in cathode active materials (CAM) used in lithium-ion batteries for electrified transportation and a frontrunner in battery recycling. Its strategy builds on the megatrends of mobility transformation, the growing need for advanced materials and the circularity for critical metals.
• Ontario has consistently ranked among North America's top auto-producing regions for more than a decade. In 2021, due to the global microchip shortage, Ontario built 1.1 million vehicles.
• The province is home to more than 300 companies and organizations pioneering connected and autonomous vehicle technologies.
• Ontario is the only jurisdiction in North America to have five major global automotive assemblers —Ford, General Motors, Honda, Stellantis and Toyota — as well as truck manufacturer Hino.

SOURCE Ministry of Economic Development, Job Creation and Trade

MEDIA CONTACTS: Lauren Nucciarone, International Marketing Unit, Ministry of Economic Development, Job Creation and Trade, [email protected]