Posted on 07/27/2024 11:42:00 AM PDT by jerod
Multibillion-dollar plant planned to bring hundreds of jobs to region
After breaking ground in 2023, the company building a plant to produce battery components for electric vehicles in a municipality near Kingston, Ont., says it's delaying construction of the plant citing a slowdown in EV sales.
In a statement to CBC News, Umicore Rechargeable Battery Materials Inc. said Friday that its project in Loyalist Township is impacted by the "significant worsening of the EV market context and the impacts this has on the entire supply chain."
The project carried a total price tag of up to $2.76 billion and was projected to create 600 jobs in the region back in 2023. According to a news release at the time from Innovation, Science and Economic Development Canada, the federal government was slated to invest up to $551.3 million.
The province was to pay up to $424.6 million, but a source familiar with the project said that as of Friday, no provincial money has flowed to Umicore.
Umicore cited a situation on June 12 when it announced that a contract with a Chinese manufacturer would not materialize. The company said its legacy contracts were tailing off faster than anticipated and there's a delay in the "ramp-up of contracts" in Europe.
"For Umicore, customers' demand projections for our battery materials have steeply declined recently," the statement reads.
The company said it's realigning its operations "to the new market reality," adding that a part of accomplishing this involves a "thorough review" of its battery materials business.
It's planning to present the conclusion of that review on its capital markets day during the first quarter of 2025.
Canada responds to market, not vice versa: prof
Greig Mordue, an associate engineering professor at McMaster University, says both federal and provincial governments wanted to be early in the market.
"They wanted to be first, and that's fine if you're making a market but the reality of it is Canada's auto industry is made up of suppliers or affiliates of globally owned companies," Mordue said.
Mordue stated that the government has spent or committed tens of billions of dollars but the industry is simply not there yet.
He said Umicore is not the only company taking a pause to evaluate its standing and wait for the market to catch up, referencing Ford which also recently scaled back its EV production.
Locals and mayor weigh in
Kathleen Palmer, a resident of Bath, Ont., told CBC News that she's unsurprised by the news but is disappointed.
"It would have provided more employment in the area and it would have helped provide some additional services to our community because right now we have to go Kingston or Napanee for any kind of shopping," said Palmer.
She does believe that in the long-term, development will happen in the area with or without the plant.
"The plant it might've pushed it along a little faster," she said.
Loyalist Township Mayor Jim Hegadorn said he understands there will be a delay with construction while the review is completed but insisted "the project is not shut down."
Hegadorn said the township expects to receive more insight in the fall and is confident the project will proceed.
He added that Loyalist is in a good place economically and has seen steady growth over the years.
EV sales dropping like a rock. All EV mandates on a Death Watch.
They also found out there’s not enough resources on the Planet to make all the batteries required by government mandates ,LOL
If CommaLaaa gets in office she’ll force all of us to buy electric cars...
Next year I plan on gettng a slightly used EV for pennies on the dollar.
What is the logic of the government spending nearly $1 million per job to begin with? They are going to make it up on volume?
Umicore has now changed its name to Uni-corn. In honor of its namesake, Uni-corn will build factories for Uni-corn shoes, updating the centuries old design to reflect current markets and technology. The Trudeau administration, after receiving much more than the usual 10% ‘gratuity’ from Uni-corn, will “invest” more taxpayer dollars in Uni-corn.
Your EV story reminded me.
The company is into cobalt and nickel materials which are being phased out of EV batteries. Over 50% of Tesla batteries are nickel and cobalt free.
Are you drunk?
Color me surprised. Did they hire Captain Obvious as a consultant?
No, but I understand it helps justifying buying an EV.
What happen to Trudeau’s Wind Farm that will make Hydrogen that they’ll ship(sail boats?) to Europe for the EU will buy ?
So, how many government checks has the company already cashed?
Doug Ford didn’t give them any... Trudeau likely gave them piles of cash in suitcases.
Batteries did not work over a century ago and still do not work today. Gas and diesel are best.
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