Israeli specialty minerals company ICL has signed a joint venture agreement with Chinese battery metals producer Shenzhen Dynanonic to establish lithium iron phosphate (LFP) cathode active material (CAM) production in Europe, with an initial investment of approximately €285 million.
A new facility at ICL’s Sallent, Spain, site is currently in planning stages and will substantially expand the company’s battery materials business.
Preparation, engineering and permits for the joint venture site in Sallent, Spain, where ICL previously operated a potash production site, are expected to be followed by construction and subsequent operations. ICL is pleased to repurpose this location and to revitalize the roughly 25 acres of available land, as it takes leadership in bringing mass production of LFP to the EU via Spain. The location has an option for further expansion and is approximately 60 miles from the Port of Barcelona, which is accessible by rail, and is also in good proximity to planned LFP battery plants in Europe.
The JV agreement is subject to material conditions precedent, final investment estimates and regulatory approvals. ICL’s share in the facility in Spain will be 80%, with the potential for modifications, pending further investment opportunities.
“This joint venture 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.”
WangBao Ren, VP of Dynanonic
