IBU-Tec Advanced Materials has signed a major agreement with PowerCo, the battery subsidiary of Volkswagen, to produce lithium iron phosphate (LFP) battery materials in Germany. The partnership aims to strengthen the European battery supply chain and establish an industrial manufacturing process for LFP cathode material within the region.
Under the contract, IBU-Tec will begin producing LFP cathode materials for automotive applications at its Weimar facility starting in 2026. The agreement targets full utilisation of IBU-Tec’s current annual production capacity of over 3,000 tonnes of LFP battery materials by 2028.
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The production deal, valued in the mid-double-digit million-euro range, covers the first three years after production begins and is expected to drive a significant rise in IBU-Tec’s group sales between 2026 and 2028.
The two companies have also entered into a joint development agreement (JDA) and a long-term supply contract to co-develop an industrial-scale LFP cathode manufacturing process in Europe. Based on the process being developed, IBU-Tec plans to expand production capacity fivefold with a new facility in Bitterfeld, construction of which is set to begin this year and conclude by 2028. PowerCo has secured the entire output of LFP materials from both plants for a ten-year period under the long-term deal.
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“The JDA and the long-term agreement with PowerCo mark a milestone for our company,” said Jörg Leinenbach, CEO of IBU-Tec Advanced Materials AG. “After years of market and product development, we are now leveraging our expertise to generate economic success that drives IBU-Tec into a new stage of growth.”
Ulrich Weitz, Chief Product Officer and founder of IBU-Tec, added, “Together with PowerCo, we are strengthening the European and North American value chain for LFP cathode material. IBU-Tec thus also has a blueprint for sustainable long-term growth, both in the battery sector and in other future-oriented markets in which the IBU-Tec Group operates.”
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IBU-Tec has been expanding its role in Europe’s energy transition through new battery recycling and sodium-ion research initiatives. Meanwhile, PowerCo continues to ramp up its battery cell production capabilities and advance solid-state battery development in partnership with QuantumScape.
