Umicore Cuts Investment Target After Expanding EV Battery Materials Production

Belgium’s Umicore said on Tuesday it had lowered its net capital expenditure target for 2026 after expanding its battery materials production facilities to North America, with plans to build a new plant in Canada.

Umicore expects total net capital expenditure between 2022 and 2026 to reach 3.8 billion euros ($4.01 billion). The group had previously said it planned to carry out phased investments of around 5 billion euros between 2022-2026.

In a call with analysts, the company specified that the difference between the two figures was a result of taking into account secured governement grants and investments in its joint-venture with German automaker Volkswagen.

Analysts at brokerage Jefferies said that the difference between both figures does not necessarily mean a drop in overall gross capex spending.

Umicore also announced a new target for earnings before interest, taxes, depreciation and amortisation (EBITDA) margins, which they expect to be above 25% from 2026.

(Reporting by Victor Goury-Laffont, Editing by Louise Heavens)