Umicore Reduces Investment Target as it Expands EV Battery Materials Production


Summary: Belgian company Umicore has revised its net capital expenditure target for 2026 downwards after expanding its battery materials production facilities and planning to build a new plant in Canada. The company now expects a total net capital expenditure of 3.8 billion euros between 2022 and 2026, down from the previously planned 5 billion euros.

Umicore, based in Belgium, has announced a reduction in its net capital expenditure target for 2026. This comes as the company has expanded its battery materials production facilities to North America and has plans to construct a new plant in Canada. The revised target for total net capital expenditure between 2022 and 2026 now stands at 3.8 billion euros, a decrease from the previously planned amount of 5 billion euros.
During a call with analysts, Umicore clarified that the difference between the two figures takes into account secured government grants and investments in its joint venture with German automaker Volkswagen. Analysts from Jefferies, a brokerage firm, highlighted that the difference in figures does not necessarily indicate a decrease in overall gross capex spending.
In addition to the revised capital expenditure target, Umicore also announced a new goal for earnings before interest, taxes, depreciation, and amortization (EBITDA) margins. Starting from 2026, the company expects the EBITDA margins to be above 25%.
Umicore’s decision to adjust its investment target comes as the company makes strategic moves to expand its presence in the electric vehicle (EV) battery materials market. By expanding its production facilities and establishing a new plant, Umicore aims to strengthen its position and meet the growing demand for EV batteries.

Tags: Umicore, investment target, EV battery materials, expansion, production facilities, Canada, capital expenditure, earnings, electric vehicle market