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| Umicore |
Belgian firm halves investment in pCAM and CAM to adjust to changing battery market dynamics
Umicore Reduces Battery Segment Capex to €800mn Through 2028
Umicore will cut its capital expenditure for battery materials solutions to €800mn between 2025 and 2028. The company previously committed €1.6bn but paused expansion plans in Canada for pCAM and CAM projects. This decision reflects slower electric vehicle (EV) growth and falling segment revenues.
At its Capital Markets Day 2025, Umicore confirmed its focus on more selective investments. Around €500mn of the revised capex will be directed to facilities in Europe and South Korea. The company still targets increasing CAM capacity to 45 GWh/year by 2028, up from 30 GWh/year today.
Canadian Battery Project on Hold as Market Cools
In 2023, Umicore announced a $2.1bn investment in Canada, including $1.8bn in capex for a battery materials site. However, weaker EV sales have prompted a strategic reassessment of capital deployment. The current pCAM production capacity remains at 80,000 metric tonnes annually.
Revenue from the battery segment dropped 30% to €386mn in the latest report. Slowing demand in Europe, coupled with a broader global deceleration in EV sales, drove this decline. Meanwhile, Umicore continues to explore cost-efficient growth in regions with stable market demand.
Shifting Priorities and Regional Focus
The company will prioritize mature markets like Europe and South Korea for near-term battery material investments. While Canadian plans are deferred, Umicore aims to sustain technological leadership through optimization and targeted expansion. This strategic pivot reflects broader trends as battery producers recalibrate amid uncertain demand.
The Metalnomist Commentary
Umicore’s capex cut signals caution across the battery supply chain as EV hype meets market reality. Prioritizing selective regional growth may offer stability while global demand resets post-2024 surge expectations.
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