Umicore’s $2.76-billion EV battery-materials manufacturing plant in Southern Ontario remains on hold indefinitely, CBC reported.

The project is located in Loyalist Township, Ont., on the shore of Lake Ontario, about halfway between Toronto and Ottawa.

Despite completing a review of its battery-materials business, the company has not provided a timeline for resuming construction, which was halted in mid-2024.

The project, which broke ground in 2023, was expected to begin production in 2026 and create 600 jobs. according to CBC. Supported by nearly $1 billion in federal and provincial funding commitments, the plant was set to manufacture cathode-active materials (CAMs) and precursor cathode-active materials (pCAMs) for EV batteries.

Umicore attributed the pause to slowing EV sales and broader market challenges. The Belgian company reported a 29% drop in revenue before interest and taxes in 2024. Umicore is prioritizing operations at its existing facilities in Poland and Korea.

Federal and Ontario government officials confirmed to CBC that no public funds have been disbursed to the company so far. Umicore is actively seeking partners to accelerate value recovery of the Loyalist and other investments.

Industry analysts have indicated that EV market uncertainty and shifting government incentives are leading companies to reassess their Canadian investments.

Pictured: Future Umicore battery-materials manufacturing plant in Loyalist Township, Ont.

Rendering: Umicore

Join Canada’s leading CRE owners, investors, developers, brokers, financiers, and more at Connect Canada on May 28 at Malaparte in Toronto. Register now to catch forecasts from Canadian CRE leaders on market challenges and opportunities, insights into international investing with evolving market dynamics, the outlook for multifamily housing, and much more. www.ConnectCanada2025.com