Belgian materials technology company Umicore N.V. has agreed to purchase Finnish cobalt inorganic salts and oxides developer Freeport Cobalt’s cobalt-refining and cathode-precursor activities in Kokkola, Finland.

Under the pact, Umicore will pay $150 million, plus the value of the working capital to be taken over at closing, which is around $40 million.

The transaction is expected to extend Umicore’s battery materials value chain. The acquired operations will supply precursors for the cathode materials production in Nysa, Poland, which is due to start in the second part of 2020.

Subject to customary closing conditions, including regulatory approvals, the acquisition will be completed by the end of 2019.