Raw materials company stops construction of $2.8 billion battery factory in Ontario

Umicore says it has halted spending on a $2.76 billion battery materials factory in Eastern Ontario.

The global materials group said the decision was due to reduced growth expectations for the electric vehicle market.

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Last October, the federal government pledged $551.3 million for the project, and the Ontario government said it would spend up to $424.6 million in capital costs.

The plant was intended for the production of cathode active materials and precursor materials for cathode active materials.

Umicore says the company is currently conducting a strategic review of its battery materials and will provide an update in the first quarter of next year.

The plant was originally expected to start production in 2026 and create around 600 jobs.