Umicore, one of the largest producers of battery materials, has warned about a sharp decline in demand for electric vehicle (EV) materials.
What Happened: The Belgium-based company, which supplies materials for EV battery cathodes, has significantly reduced its profit forecast for 2024, according to the Financial Times on Wednesday. CEO Bart Sap stated that volumes for battery materials could be equal to or slightly lower than last year.
Shares in Umicore dropped by 7 cents, hitting a 10-year low. The company attributed the decline to reduced plans by European automakers and unfulfilled expected volumes from a Chinese manufacturer.
“Our short-term outlook in battery materials is clearly disappointing,” Sap said.
Without a one-off €50 million gain related to vehicle recalls, Umicore said its battery materials business would have been lossmaking this year. The ...