ICL, a leading global specialty minerals company, has announced a memorandum of understanding (MOU) with Orbia Advance Corp., S.A.B. de C.V. (BMV: ORBIA*) Fluor & Energy Materials (OF&EM) to enhance their presence in the North American battery materials supply chain. The MOU establishes a framework for ICL’s Industrial Products division to supply phosphorus trichloride (PCl3) to OF&EM for the production of LiPF6, a vital raw material for lithium-ion batteries, at its planned manufacturing facility in St. Gabriel, Louisiana. ICL is a prominent global supplier of high-quality PCl3, produced at its plants in Gallipolis Ferry, West Virginia, and Bitterfeld, Germany.
This collaboration aims to advance electrification in both transportation and stationary applications while bringing the production of this crucial battery component to North America. The partnership will also help optimize the performance, efficiency, and safety of batteries used in consumer electronics, energy storage, and other applications.
“Just as our Phosphate Solutions division’s expertise in specialty phosphates has facilitated ICL’s entry into LFP battery materials, Orbia Fluor & Energy Materials’ leadership in fluorine technologies makes them an ideal partner for LiPF6 solutions,” said Anantha Desikan, ICL’s EVP and Chief Innovation and Technology Officer. “This expansion further develops ICL’s battery materials operations to include our Industrial Products division.”
Miki Oljaca, Vice President of the Energy Materials Business for OF&EM, emphasized the importance of strategic partnerships in building a secure and resilient domestic supply chain for lithium-ion batteries. “Our planned LiPF6 facility in St. Gabriel, Louisiana, will be the first of its kind in the U.S., producing this essential electrolyte material to support a significant portion of the domestic electric vehicle production.”
In October 2022, ICL and OF&EM received funding from the U.S. Department of Energy to boost domestic battery manufacturing for energy storage and electric vehicles, reducing reliance on imported materials and components. According to McKinsey Battery Insights, the lithium-ion battery market, including LFP batteries, is projected to grow over 30% annually from 2022 to 2030, reaching a market value exceeding $400 billion.
