Canada and Ontario have reached an agreement with Umicore Rechargeable Battery Materials Canada for the construction of a new factory in Loyalist Township

The governments of Canada and Ontario have welcomed an investment from Umicore Rechargeable Battery Materials Canada in the construction of a new manufacturing plant in Loyalist Township. The plant will produce cathode active materials (CAM) and precursor cathode active materials (pCAM), which are important components in the production of electric vehicle (EV) batteries. The proposed project, with a total eligible cost envelope of up to $2.761 billion, will be carried out in stages. Umicore has announced a $2.1 billion solid investment decision for the first stage, of which $1.8 billion is capital expenditures, for a battery materials production capacity of 35 GWh per year.

“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 of the critical mineral resources necessary to make EV batteries,” said François-Philippe Champagne, Minister of Innovation, Science, and Industry. “This is why Umicore has chosen Canada and Loyalist Township as the location for its new electric vehicle battery materials plant, which will manufacture green battery components.” This project will bring significant economic benefits to Ontario, create well-paying jobs for Canadians, and cement Canada’s position as the preferred green supplier.”

Based on the complete scope of the project, the Government of Canada is investing up to $551.3 million in Umicore’s initiative, while the Government of Ontario is investing up to $424.6 million. Umicore’s plant will mass-produce CAM and pCAM for EV and battery manufacturers in Canada and the United States. The corporation will create 600 new direct employment in the project’s first stage, and an additional 700 co-op roles for students will be established throughout the project, making Umicore one of the largest private employers in Eastern Ontario.