Umicore's Bold Bet on EV Batteries Backfires as Stock Plummets 70%
Belgian materials group Umicore is undergoing a major strategic shift, focusing on battery materials and recycling for electric vehicles. The move aims to reduce reliance on precious metals and traditional catalysts. Yet, since 2021, its market value has dropped by over 70%, falling from around €10 billion to under €3 billion by early 2026.
Umicore's transformation began in 2021, realigning the company towards sustainable technologies and electrified mobility. The shift comes as the stock market increasingly adopts electric vehicles, creating demand for battery materials and recycling solutions. However, the transition has weighed heavily on its share price, with market scepticism and delayed growth targets adding pressure.
While competitors like BASF, Johnson Matthey, and Albemarle maintained stability—or even modest growth—through cost-cutting and diversification, Umicore's heavy investments in new capacities and technologies have strained finances. Despite the short-term challenges, the long-term outlook remains tied to the expanding electric vehicle market and circular economy opportunities.
Analyst views on the company are mixed. Some praise its expertise in recycling and battery technology, while others warn of risks in its battery materials division. Current price targets sit only slightly above present levels, reflecting cautious optimism about a potential recovery.
German investors can access Umicore through Euronext Brussels or local platforms like Xetra and Tradegate. For those already invested in German automakers, the company offers a targeted but higher-volatility play in the green transition and recycling sector.
Umicore's strategic pivot towards battery and recycling solutions aligns with the growth of electric mobility. Yet, its share price continues to face headwinds due to high investment costs and stock market uncertainty. The company's future performance will depend on its ability to capitalise on long-term demand in sustainable supply chains and recycling.
