Umicore’s Battery Materials Sales Plunge by 30% Amid EV Market Headwinds

Umicore

Northvolt collapse and weak demand weigh on Europe’s battery supply chain

Battery Materials Division Suffers Sharp Decline

Umicore reported a 30% drop in sales from its battery materials division in 2024, totaling €386 million. The Belgian chemical company cited declining demand across Europe and global weakness in electric vehicle (EV) sales as key drivers. Chief executive Bart Sap described the year as “sobering,” pointing to stalled EV adoption and strategic setbacks. As a result, Umicore paused development at its Canadian plant and tightened capital spending.

Northvolt Bankruptcy Disrupts Strategic Supply Agreement

A major blow came from the bankruptcy of Swedish battery manufacturer Northvolt, which filed in March 2024. Northvolt had signed a long-term supply agreement with Umicore in 2021 for cathode active materials (CAMs). This deal was central to Umicore’s efforts to expand in Europe’s battery value chain. However, the fallout has delayed market ramp-up and disrupted regional supply ambitions. The company expects flat battery materials performance to continue through 2025.

Germanium Business Shows Resilience

Meanwhile, Umicore’s electro-optic division saw modest growth, led by demand for germanium-based products in aerospace and electronics. In addition, the firm benefited from recycling demand through its closed-loop germanium refining services. To strengthen feedstock security, Umicore partnered with STL, a subsidiary of Gecamines in the Democratic Republic of Congo. Shipments from the Big Hills Tailing site began in January and are expected to continue monthly, supporting Umicore’s supply diversification.

The Metalnomist Commentary

Umicore’s performance in 2024 highlights the growing vulnerability of Europe’s battery ambitions. The collapse of Northvolt is a cautionary tale, exposing weaknesses in upstream coordination. While setbacks continue in battery materials, Umicore’s pivot to strategic germanium sourcing may offer short-term stability.