Umicore Accelerates Expansion Plans
Belgium’s Umicore, a leading supplier of cathode materials for batteries, is accelerating its capacity expansion plans to meet a surge in demand from hybrid and electric vehicles. Using its latest generation of proprietary technologies, Umicore said it will be able to triple existing capacity by the end of 2018 across a broad range of grades.
Production of nickel-manganese-cobalt (NMC) cathode materials will be increased at existing facilities in Cheonan, South Korea, and Jiangmen, China, and new plants will be built on adjacent greenfield land in both locations. Total investment costs will come to around €160 million. The additional capacity should start coming on stream in the second half of 2017.
According to Umicore, the number of electrified car models being launched – from hybrid to full electric versions – has surged in recent months, with market penetration projected to grow at an increasingly fast pace, driven by the need to cut CO2 emissions and improve air quality. In addition, there is a trend toward using electric vehicles for public transportation.
The company said its NMC cathode materials are key ingredients in enabling the improvements required for battery technology to increase driving range and reduce the total cost of owning an electric car.
Marc Grynberg, Umicore’s CEO, said the company is well prepared to add significant capacity quickly to support customers’ growth, adding that the investments underscore its ambition to be a global leader in materials that enable clean mobility.
