Commerce

Umicore takes on € 125 million in debt for battery materials factory in Poland

June 15 (Renewables Now) – Belgian Umicore (EBR: UMI) to secure € 125m debt from the European Investment Bank (EIB) for a new cathode materials plant in Poland that will supply the electric vehicle market (VE).

The loan will help the investor cover around 50% of the overall project costs in the initial phase, the lender said when announcing the deal on Monday.

The Belgian materials and recycling technology group will set up the new production plant in the town of Nysa in southwestern Poland, planning to offer the cathode materials to lithium-ion battery manufacturers for use in electric vehicles. The products will be supplied both to the region and to the world.

This is the EIB’s first debt financing agreement with Umicore. “The trend towards electrification of the automotive industry is gaining ground and in this context it is important to develop European capacity across the entire production value chain of electric vehicle batteries,” said Teresa. Czerwinska, EIB Vice-President in charge of operations in Poland.

In line with the expansion of the battery industry, the EIB plans to increase its support for battery-related projects to more than one billion euros ($ 1.13 billion) this year, which is equivalent to its level. total for such programs over the past 10 years.

(1.0 EUR = 1.125 USD)