Shares in Umicore, a leading materials technology and recycling group, surged by 15% on Tuesday following a pledge of support from the Canadian and Ontario governments for its battery-materials factory in Loyalist, Ontario. The factory is a key part of Umicore's strategy to penetrate the North American electric-vehicle batteries market.
The total investment in the factory, bolstered by non-refundable capital expenditure grants, is expected to reach €690 million ($728.7 million) by 2026. This projection includes the possibility of further investment of up to €500 million by the end of the decade.
Citi analysts highlighted that the public funding component of €580 million was unexpectedly high and surpassed their predictions. The significant support from the Canadian and Ontario governments underscores their commitment to fostering growth in the electric vehicle sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.