Umicore: wins deal to supply materials for EV batteries

(CercleFinance.com) - Belgian specialty materials maker Umicore said on Monday it has won a contract to supply nickel, manganese and cobalt cathode materials for LG Chem's rechargeable lithium-ion batteries.


Umicore shares jumped over 7% on this news in Brussels.

The multi-year strategic supply agreement will serve the Korean chemical company's needs at Umicore plants in Poland, Korea and China.

The contract starts in 2020 and covers a total volume of 125,000 metric tonnes, which will be delivered over several years. According to analysts, the deal could represent between 3 billion and 4 billion euros in revenues.

The move comes as LG Chem is facing growing demand for rechargeable lithium-ion batteries as car manufacturers expand their offering of longer-range electric vehicle models.

The companies said they have also signed a technology licensing arrangement covering IP rights.

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