ICL, a leading global specialty minerals company listed on both the New York Stock Exchange and Tel Aviv Stock Exchange, announced the signing of a joint venture agreement with Shenzhen Dynanonic Co., Ltd. The partnership aims to establish lithium iron phosphate (LFP) cathode active material (CAM) production in Europe, with an initial investment of approximately €285 million. The new facility is planned for ICL’s site in Sallent, Spain, and is set to significantly expand the company’s battery materials business in the region.
Phil Brown, president of ICL’s Phosphate Solutions Division, emphasized the strategic importance of the venture. “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,”
He further added, “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.”
WangBao Ren, vice president of Dynanonic, expressed similar enthusiasm about the collaboration. “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. 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.”
“Automotive OEMs are increasing their usage of LFP to improve the economic competitiveness of EVs,” said Isaac Chan, a partner in Roland Berger ’s automotive practice. “For example, in Europe the LFP share of lithium-ion batteries will more than double to reach 35% by 2030.”
Industry experts highlight the growing significance of LFP in the electric vehicle sector. Isaac Chan, a partner in Roland Berger’s automotive practice, noted, “Automotive OEMs are increasing their usage of LFP to improve the economic competitiveness of EVs. For example, in Europe the LFP share of lithium-ion batteries will more than double to reach 35% by 2030.”
The Sallent site, where ICL previously operated a potash production facility, is slated for repurposing to accommodate the new LFP production plant. Preparation, engineering, and permitting processes are expected to precede construction and operational phases. ICL plans to revitalize the approximately 25-acre site, taking a leadership role in bringing mass production of LFP to the European Union via Spain. The location offers options for further expansion and is strategically situated about 60 miles from the Port of Barcelona, accessible by rail, and in proximity to planned LFP battery plants in Europe.
The joint venture agreement is subject to certain conditions precedent, final investment estimates, and regulatory approvals. ICL will hold an 80% stake in the Spanish facility, with potential for adjustments pending further investment opportunities.
Source: ICL Press Release
