Specialty materials group Umicore will more than triple its annual output of materials needed for rechargeable batteries used in hybrid and electric vehicles by 2013, anticipating a surge in demand.
The group said on Wednesday it would invest 60 million euros ($80.56 million) to expand its cathode material production. It would ramp up production capacity at its existing operations in South Korea and China and would develop a new site in Japan.
The investment would focus on further development and production of newer type cathode materials, which the group said will be used increasingly for notebook PCs and batteries in hybrid and electric vehicles.
Electric vehicles may not sell worldwide in large numbers for some years, but Chief Executive Marc Grynberg said tightening emissions legislation and government support for green technology meant automakers’ focus would increasingly shift to zero-emissions vehicles.
“You don’t need a huge number of cars to justify the commitment we’re making,” Grynberg told reporters at a news conference.
“What we have in mind is penetration of three to five percent of passenger cars in the next five years,” he said.
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