The Israeli minerals group ICL and the Chinese battery material manufacturer Shenzhen Dynanonic are setting up a joint venture for the production of LFP cathode material in Europe. The initial investment amounts to around 285 million euros. The plant is to be located in Spain.
The joint venture plans to build a new production facility at the existing ICL site in Sallent, Catalonia. The plant is currently in the planning phase and is intended to significantly expand the company’s battery materials business. According to the company, lithium iron phosphate (LFP) is a perfect fit for ICL’s portfolio.
“This expansion builds on our strong, existing upstream position in specialty phosphates globally and leverages the strengths of Dynanonic, a leading producer of battery materials, to develop a significant new market for growth,” said Phil Brown, President of ICL’s Phosphate Solutions Division. “The time is right to make this move, as LFP is a critical solution for the future of Europe’s energy transition. ICL is excited about this potential investment in Spain, and we are extremely enthusiastic about collaborating with Dynanonic – a valued and long-term partner.”
“This JV aligns with Dynanonic and ICL’s goals and leverages each of our strengths, as we seek to jointly benefit from the development of the lithium-ion battery industry in Europe,” said WangBao Ren, Vice President of Dynanonic. “Establishing the project in Spain expands our presence in the European market, while ensuring proximity to customers, enhancing our competitiveness, and supporting our vision of becoming a leading global provider of new energy material solutions.”
The project is also likely to be subsidised. After all, the Catalonian regional government is very positive about it. The Minister of Economy and Labour, Miquel Sàmper, emphasised that the Catalan government is delighted with this announcement: “We have accompanied these conversations. We are very satisfied by an announcement that implies a strong investment in Catalonia, which will lead to the direct and indirect creation of quality jobs.”
Minister Sàmper added that this project “places Catalonia in the objective of sovereignty in the production of strategic materials, driving the value chain of electric mobility.” He also announced that he would be travelling to China in the coming months to continue this support, in this case with Dynanoni, the Chinese partner of the joint venture.
According to management consultancy Roland Berger, the proportion of LFP in lithium-ion batteries is set to more than double to 35 per cent in Europe by 2030. “Automotive OEMs are increasing their usage of LFP to improve the economic competitiveness of EVs,” says Isaac Chan, Partner in the Automotive division at Roland Berger.
ICL previously operated a potash production plant in Sallent and is now looking forward to revitalising the approximately 25-hectare site with the LFP project. The project in Spain will be ICL’s second LFP plant. The first plant is currently under construction in St. Louis in the US state of Missouri. However, after the foundation stone was laid in 2023, it soon became apparent that the location was unsuitable. However, ICL has now found a replacement site in St. Louis and plans to invest 574 million dollars in a factory for LFP cathode material there.
