Umicore, a Belgian metal recycling group, reduced its 2024 profit forecast due to weak demand projections for battery materials caused by a slowing electric vehicle (EV) market. This announcement sent its shares plummeting to a near-decade low.

Umicore had expected increased orders from Chinese EV manufacturers looking to expand into Europe. However, the company announced on Wednesday that these volumes will not materialize in 2024, and legacy contracts are ending faster than expected.

Last week, battery maker ACC, supported by carmakers Stellantis and Mercedes, halted work in some factories to switch to batteries free of nickel and cobalt, which are rare and expensive metals supplied by Umicore.

Umicore now projects adjusted EBITDA, earnings before interest, taxes, depreciation, and amortization, to be between EUR 760 million and EUR 800 million, down from its previous forecast of EUR 900 million to 950 million.