Canada Unveils C$975 Million Financial Package for Umicore Cathode Plant

• Canadian governments offer C$975 million to Umicore for battery supply-chain plant
• Umicore plans to build a factory to manufacture cathodes for EV batteries
• Cathodes account for 50% of the value of an EV battery
• The plant will be located 135 miles east of Toronto
• Canada pledges C$551.3 million and Ontario offers C$424 million in financing
• Umicore intends to spend over C$2 billion in constructing the plant
• Canadian and Ontario governments previously announced production subsidies for EV-battery manufacturing plants
• Canadian financing is a response to the Inflation Reduction Act in the U.S.

Canadian governments have unveiled a financial package of C$975 million for Belgium’s Umicore to build a battery supply-chain plant in Canada. Umicore plans to construct a factory that will manufacture cathodes, which are essential components of electric-vehicle batteries. Cathodes account for about 50% of the value of an EV battery and contain critical minerals such as nickel, cobalt, manganese, and lithium. The plant will be located approximately 135 miles east of Toronto. Canada has pledged C$551.3 million, while Ontario has offered C$424 million in financing. Umicore intends to invest over C$2 billion in the construction of the plant. This financial support follows previous announcements of production subsidies for EV-battery manufacturing plants in Canada. The Canadian financing is partly a response to the Inflation Reduction Act in the U.S., which provides significant federal tax incentives and loans to develop domestic supply chains for green-energy industries.