ICL and Dynanonic to invest €285M in a new plant for battery materials in Catalonia

ICL, a global specialty minerals company, today announced it has signed a joint venture agreement with Shenzhen Dynanonic Co., Ltd. to establish lithium iron phosphate (LFP) cathode active material production in Europe, precisely in a plant close to Barcelona. The initial investment is approximately €285 million.

A new facility at ICL's Sallent (Barcelona) site is currently in the planning stages and will substantially expand the company’s battery materials business. The project demonstrates ICL’s commitment to developing high-quality solutions for a sustainable supply chain and represents a significant step forward for the company’s battery materials portfolio in Europe.

“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 the Phosphate Solutions Division of ICL.

“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.”

“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,” said WangBao Ren, vice president of Dynanonic.

“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.”

A highly strategic project for Catalonia

The minister of Business and Labour, Miquel Sàmper, emphasized that the Catalan Government is pleased with the announcement: "We have accompanied these conversations. 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."

Minister Sàmper added that this project "places Catalonia in the objective of sovereignty in the production of strategic materials, driving the value chain of electric mobility." He has also advanced that in the coming months, he will travel to China to continue providing this support, in this case with the joint venture's Chinese partner.

Automotive OEMs are increasing their usage of LFP to improve the economic competitiveness of electric vehicles. It is expected that in Europe, the LFP share of lithium-ion batteries will more than double to reach 35% by 2030.

Preparation, engineering, and permits for the joint venture site in Sallent, Catalonia, where ICL previously operated a potash production site, are expected to be followed by construction and subsequent operations.

According to ICL’s press release, the company is pleased to repurpose this location and revitalize the roughly 25 acres of available land as it takes leadership in bringing mass production of LFP to the European Union via Spain. The location has an option for further expansion and is approximately 96 miles from the Port of Barcelona, which is accessible by rail and is also in good proximity to planned LFP battery plants in Europe.

Source: ICL and Catalonia Trade & Investment