Belgium’s Umicore expects the thriving European electrical automobile market to spice up its battery enterprise in 2021 as the corporate forecast on Thursday “substantial” group-level development in comparison with final yr.

(Additionally Learn: Democrats to push clean-energy tax breaks in infrastructure plan)

The maker of catalytic converters and battery supplies for carmakers mentioned quantity development in its battery supplies phase in 2021 ought to “greater than offset” the overcapacity and pricing pressures that weighed on it final yr.

Chief Govt Marc Grynberg instructed analysts Umicore was nicely positioned to learn from Europe’s electrical automobile push.

The market share of electrical automobiles based mostly on new automotive registrations elevated to 10.5% within the European Union in 2020 from 3% the earlier yr, in accordance with information from the European Car Producers’ Affiliation.

KBC analysts have tipped the rising EV market as a possible long-term development driver for Umicore, which can be energetic within the power and recycling sectors.

The group, which competes with Britain’s Johnson Matthey and Germany’s BASF, added that it anticipated to extend earnings in all companies this yr.

The pandemic-hit auto business confirmed indicators of restoration within the second half of final yr, led by China, the place automotive gross sales subsequently surged 30% in January.

This growth ought to increase outcomes, particularly in Umicore’s catalysis enterprise, it mentioned.

The corporate added its recycling enterprise also needs to profit strongly from excessive treasured metallic costs.

Umicore additionally introduced it had began getting ready for a CEO succession, with Grynberg, who has been within the put up since 2008, to remain on till a successor is appointed. The group didn’t say how lengthy it’d take.

The corporate reported adjusted earnings earlier than curiosity and tax (EBIT) at 536 million euros ($650 million) in 2020, up 5% from a yr earlier and above consensus of 527 million euros.

This story has been printed from a wire company feed with out modifications to the textual content.