Umicore says it has halted spending on a $2.76-billion battery materials plant in eastern Ontario.
The global materials company says it made the decision because of scaled-back expectations for growth in the electric vehicle market.
Last October, the federal government committed to put $551.3 million toward the project and the Ontario government said it would spend up to $424.6 million in capital costs.
The plant was set to build cathode active materials and precursor cathode active materials.
Umicore says it is conducting a strategic review of its battery materials and will provide an update in the first quarter of next year.
The plant had previously expected to begin production in 2026 and create around 600 jobs.
This report by The Canadian Press was first published July 26, 2024.
The Canadian Press
