ICL and Dynanonic Partner to Produce LFP for Europe
ICL, a leading global specialty minerals company, has announced a significant step in its battery materials business with the signing of a joint venture (JV) agreement with Shenzhen Dynanonic Co., Ltd. This partnership aims to establish lithium iron phosphate (LFP) cathode active material (CAM) production in Europe. The initial investment for this ambitious project is approximately €285 million. A new state-of-the-art facility will be developed at ICL’s Sallent site in Spain, further solidifying the company’s commitment to advancing sustainable energy solutions.
Expanding into Europe’s Growing Battery Market
The planned facility in Sallent is currently in the planning stages and represents a strategic move for ICL to expand its presence in the European battery market. This initiative aligns with the company’s long-term vision of delivering high-quality, sustainable solutions for the energy transition. By entering the European market for LFP CAM production, ICL is positioning itself at the forefront of the continent’s shift towards renewable energy and electric vehicles (EVs).
Phil Brown, president of the Phosphate Solutions Division of ICL, emphasized the importance of this development, stating, “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. 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.”
Strategic Collaboration with Dynanonic
Dynanonic, a prominent Chinese producer of battery materials, is a key partner in this joint venture. WangBao Ren, vice president of Dynanonic, highlighted the mutual benefits of the collaboration, noting, “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.”
The joint venture is a natural fit for both companies, as it combines Dynanonic’s expertise in battery materials with ICL’s extensive experience in specialty phosphates. This collaboration is expected to yield a highly competitive and efficient production facility, ensuring the delivery of top-quality LFP CAM to meet Europe’s growing demand.
The Rising Demand for LFP in Europe
Lithium iron phosphate is rapidly gaining traction as a preferred cathode material for lithium-ion batteries, particularly in the automotive sector. Automotive original equipment manufacturers (OEMs) are increasingly adopting LFP technology to enhance the economic competitiveness of EVs. According to Isaac Chan, a partner in Roland Berger’s automotive practice, “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.”
This growing demand underscores the strategic timing of the ICL-Dynanonic joint venture. By establishing a local production facility in Europe, the JV aims to meet the region’s rising need for LFP CAM while reducing reliance on imports and supporting the development of a sustainable and resilient supply chain.
Revitalizing the Sallent Site
The new facility will be located at ICL’s former potash production site in Sallent, Spain. This location offers several strategic advantages, including proximity to key infrastructure and planned LFP battery plants in Europe. The site’s approximately 25 acres of available land will be repurposed for the project, reflecting ICL’s commitment to sustainability and efficient land use.
Preparation, engineering, and permitting for the site are currently underway, with construction expected to follow soon after. Once operational, the facility will serve as a cornerstone of ICL’s battery materials business, positioning the company as a leader in LFP production in Europe. The location also offers the potential for future expansion, ensuring long-term scalability as the market continues to grow.
The Sallent site is approximately 60 miles from the Port of Barcelona, providing easy access to transportation networks, including rail connections. This strategic location will facilitate the efficient distribution of LFP CAM to customers across Europe, further enhancing the competitiveness of the JV.
Investment and Ownership Structure
The initial investment of €285 million underscores the significant scale of this project. ICL will hold an 80% stake in the facility, with the potential for adjustments based on future investment opportunities. The JV agreement is subject to several conditions, including regulatory approvals and final investment estimates. Both ICL and Dynanonic are committed to meeting these requirements to ensure the successful implementation of the project.
Supporting Europe’s Energy Transition
This joint venture marks a major milestone for ICL as it expands its footprint in the battery materials market and supports Europe’s transition to clean energy. By producing LFP CAM locally, the JV will help address the growing demand for sustainable energy solutions while reducing the region’s reliance on imported materials. The project aligns with Europe’s broader goals of achieving energy independence and decarbonizing the economy.
In addition to its environmental benefits, the project is expected to deliver significant economic and social value. The repurposing of the Sallent site will create jobs and contribute to the revitalization of the local community, further underscoring ICL’s commitment to responsible and sustainable business practices.
A Bright Future for LFP in Europe
The partnership between ICL and Dynanonic represents a bold step forward for the European battery industry. With the demand for LFP cathode materials expected to grow rapidly in the coming years, the new facility in Sallent will play a crucial role in meeting this need. By combining their respective strengths, ICL and Dynanonic are poised to establish a leading position in the European LFP market.
As Europe continues to embrace electric vehicles and renewable energy, the importance of reliable and sustainable battery materials cannot be overstated. The ICL-Dynanonic joint venture is not only a testament to the companies’ shared vision but also a critical contribution to Europe’s energy transition. This landmark project is set to reshape the landscape of the battery materials industry and pave the way for a more sustainable future.
