Israeli minerals group ICL and Chinese battery material manufacturer Shenzhen Dynanonic are forming a joint venture to produce lithium iron phosphate (LFP) cathode material in Europe, with an initial investment of approximately €285 million. The facility will be located at ICL’s existing site in Sallent, Catalonia.
The project aims to bolster ICL’s battery materials portfolio and tap into the growing demand for LFP cathodes, a key component in lithium-ion batteries. “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.”
Dynanonic echoed this sentiment, highlighting the strategic benefits of the collaboration. “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,” said WangBao Ren, Vice President of Dynanonic.
The project has garnered strong regional support. Miquel Sàmper, Catalonia’s Minister of Economy and Labour, welcomed the investment, emphasizing its potential to create high-quality jobs and strengthen the region’s role in electric mobility. “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,” Sàmper said.
The Catalan government views the initiative as a step toward achieving sovereignty in strategic material production and plans to further collaborate with Dynanonic. Sàmper also announced plans to travel to China to advance discussions with the company.
The European market for LFP cathodes is expected to expand rapidly, with their share in lithium-ion batteries projected to grow to 35% by 2030, according to consultancy Roland Berger. “Automotive OEMs are increasing their usage of LFP to improve the economic competitiveness of EVs,” said Isaac Chan, Partner in Roland Berger’s Automotive division.
This project marks ICL’s second LFP plant, following its first facility in St. Louis, Missouri, where the company recently revised its plans to address site challenges.