Umicore has decided to postpone a "large scale" investment in an unspecified battery recycling plant in Europe due to a slowdown in the EV market.
It expects production at that plant to start in 2032 at the earliest.
"The market context is challenging and we have seen a slowdown in the growth of EV sales in the short and mid term," CEO Bart Sap told analysts in a call.
Carmakers are flagging sluggish demand for EVs as high prices deter buyers. Umicore supplies battery components to EV manufacturers.
Its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 24% to 393 million euros (USD 426.68 million), short of the 398.5 million expected by analysts in a company-provided consensus.
Its Battery Materials division posted a 33% drop in sales to 217 million euros.
Umicore said it would have to adjust some business assumptions and announced it would launch a strategic review. It now assumes delays of at least 18 months in contracts in Battery Materials.
Umicore will book a non-cash impairment in the Battery Materials unit of 1.6 billion euros to reflect lower values of some of its plants and equipment.
In June, the group unveiled plans for major job cuts at its German business producing automotive catalysts which help reduce emissions in gasoline and diesel engines.
Sales at the Catalysis unit, which generates roughly half of its profit, fell by 10%, Umicore said.
Nonetheless, the company confirmed its full-year guidance for core profit of between 760 million and 800 million euros.
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