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ICL Signs Strategic Agreement with Dynanonic to Produce Lithium Iron Phosphate for European Battery Market

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ICL has announced a strategic joint venture with Shenzhen Dynanonic to establish lithium iron phosphate (LFP) cathode active material production in Europe, with an initial investment of approximately €285 million. The facility will be located at ICL's Sallent, Spain site, approximately 60 miles from the Port of Barcelona.

ICL will hold an 80% share in the facility, which aims to expand the company's battery materials business and develop sustainable supply chain solutions. The project will repurpose roughly 25 acres of ICL's former potash production site, with potential for further expansion.

According to Roland Berger's automotive practice, LFP share of lithium-ion batteries in Europe is expected to more than double to 35% by 2030. The strategic location offers good proximity to planned LFP battery plants in Europe and rail access to Barcelona's port. The agreement is subject to conditions precedent, final investment estimates, and regulatory approvals.

ICL ha annunciato una joint venture strategica con Shenzhen Dynanonic per stabilire la produzione di materiali attivi per catodi a base di fosfato di ferro-litio (LFP) in Europa, con un investimento iniziale di circa 285 milioni di euro. L'impianto sarà situato presso il sito di ICL a Sallent, in Spagna, a circa 100 chilometri dal porto di Barcellona.

ICL deterrà una quota dell'80% dell'impianto, che mira ad espandere il business dei materiali per batterie dell'azienda e a sviluppare soluzioni sostenibili per la catena di approvvigionamento. Il progetto riutilizzerà circa 10 ettari dell'ex sito di produzione di potassio di ICL, con potenzialità di ulteriore espansione.

Secondo la divisione automotive di Roland Berger, la quota di LFP nelle batterie agli ioni di litio in Europa dovrebbe più che raddoppiare, raggiungendo il 35% entro il 2030. La posizione strategica offre una buona prossimità agli impianti di batterie LFP previsti in Europa e un accesso ferroviario al porto di Barcellona. L'accordo è soggetto a condizioni preliminari, stime di investimento finale e approvazioni normative.

ICL ha anunciado una joint venture estratégica con Shenzhen Dynanonic para establecer la producción de materiales activos de cátodo de fosfato de hierro y litio (LFP) en Europa, con una inversión inicial de aproximadamente 285 millones de euros. La instalación estará ubicada en el sitio de ICL en Sallent, España, a aproximadamente 100 kilómetros del puerto de Barcelona.

ICL poseerá un 80% de la instalación, que tiene como objetivo expandir el negocio de materiales para baterías de la empresa y desarrollar soluciones sostenibles para la cadena de suministro. El proyecto reutilizará aproximadamente 10 hectáreas del antiguo sitio de producción de potasa de ICL, con potencial para una futura expansión.

Según la práctica automotriz de Roland Berger, se espera que la cuota de LFP en las baterías de iones de litio en Europa se más que duplique, alcanzando el 35% para 2030. La ubicación estratégica ofrece buena proximidad a las plantas de baterías LFP planificadas en Europa y acceso ferroviario al puerto de Barcelona. El acuerdo está sujeto a condiciones precedentes, estimaciones finales de inversión y aprobaciones regulatorias.

ICL은 셴젠 다이너노닉과 전략적 합작 투자를 발표하고 유럽에서 리튬 철 인산(LFP) 양극 활성 물질 생산을 설립할 예정이며, 초기 투자액은 약 2억 8500만 유로입니다. 이 시설은 스페인 살렌트에 위치하며, 바르셀로나 항구에서 약 100킬로미터 떨어져 있습니다.

ICL은 이 시설의 80% 지분을 보유하게 되며, 이는 회사의 배터리 소재 사업을 확장하고 지속 가능한 공급망 솔루션을 개발하는 것을 목표로 하고 있습니다. 이 프로젝트는 ICL의 구형 비료 생산 부지 약 10헥타르를 재사용하며 추가 확장 가능성이 있습니다.

롤란드 베르거의 자동차 부문에 따르면 유럽의 리튬 이온 배터리에서 LFP의 비중이 2030년까지 35%로 두 배 이상 증가할 것으로 예상됩니다. 이 전략적 위치는 유럽 내 계획된 LFP 배터리 공장과의 근접성을 제공하며, 바르셀로나 항구로의 철도 접근성을 갖추고 있습니다. 이 계약은 선행 조건, 최종 투자 추정치 및 규제 승인의 조건을 충족해야 합니다.

ICL a annoncé un partenariat stratégique avec Shenzhen Dynanonic pour établir la production de matériaux actifs pour cathodes à base de phosphate de fer et de lithium (LFP) en Europe, avec un investissement initial d'environ 285 millions d'euros. L'installation sera située sur le site d'ICL à Sallent, en Espagne, à environ 100 km du port de Barcelone.

ICL détiendra une participation de 80 % dans l'installation, qui vise à étendre les activités de l'entreprise dans le domaine des matériaux de batterie et à développer des solutions durables pour la chaîne d'approvisionnement. Le projet réutilisera environ 10 hectares de l'ancien site de production de potasse d'ICL, avec un potentiel d'expansion future.

Selon le bureau automobile de Roland Berger, la part du LFP dans les batteries lithium-ion en Europe devrait plus que doubler pour atteindre 35 % d'ici 2030. La localisation stratégique offre une bonne proximité des usines de batteries LFP prévues en Europe et un accès ferroviaire au port de Barcelone. L'accord est soumis à des conditions préalables, des estimations d'investissement finales et des approbations réglementaires.

ICL hat eine strategische Partnerschaft mit Shenzhen Dynanonic angekündigt, um die Produktion von Lithium-Eisenphosphat (LFP) Kathodenmaterial in Europa aufzubauen, mit einer anfänglichen Investition von etwa 285 Millionen Euro. Die Anlage wird am Standort von ICL in Sallent, Spanien, etwa 100 Kilometer vom Hafen von Barcelona entfernt, eingerichtet.

ICL wird 80% des Anteils an der Anlage halten, die darauf abzielt, das Geschäft mit Batteriematerialien des Unternehmens auszubauen und nachhaltige Lieferkettenlösungen zu entwickeln. Das Projekt wird etwa 10 Hektar des ehemaligen Kali-Produktionstandorts von ICL umnutzen, mit Potenzial für weitere Erweiterungen.

Laut der Automobilpraxis von Roland Berger wird der Anteil von LFP an Lithium-Ionen-Batterien in Europa bis 2030 voraussichtlich mehr als doppelt so hoch sein und 35% erreichen. Der strategische Standort bietet eine gute Nähe zu geplanten LFP-Batteriefabriken in Europa und Zugang zu den Bahnverbindungen zum Hafen von Barcelona. Die Vereinbarung steht unter dem Vorbehalt bestimmter Bedingungen, endgültiger Investitionsschätzungen und behördlicher Genehmigungen.

Positive
  • Strategic expansion into European battery materials market with €285 million initial investment
  • 80% ownership stake in the joint venture
  • Strategic location near Port of Barcelona with rail access
  • Potential for facility expansion on 25-acre site
  • Growing market opportunity with LFP battery share expected to reach 35% by 2030
Negative
  • Significant capital expenditure required (€285 million)
  • Project subject to regulatory approvals and conditions
  • Construction and operations timeline not specified

Insights

This strategic joint venture represents a €285 million initial investment into Europe's growing EV battery market, with ICL holding an 80% stake. The partnership leverages ICL's phosphate expertise and Dynanonic's battery materials manufacturing capabilities to capture a significant share of the expanding LFP market. According to Roland Berger's projections, LFP's share in European lithium-ion batteries will more than double to 35% by 2030, indicating substantial revenue potential.

The Sallent facility's strategic location, with rail access to Barcelona's port and proximity to planned European battery plants, optimizes logistics costs and positions ICL competitively in the supply chain. The repurposing of the former potash site demonstrates efficient capital allocation and potential for margin expansion through existing infrastructure. The 25-acre site provides scalability options, important for capturing future market growth.

The European EV battery market is experiencing a paradigm shift toward LFP technology, driven by its cost advantages and safety profile. This move positions ICL strategically in a rapidly growing market segment where local production capacity is currently The timing is particularly advantageous as European automakers accelerate their EV transitions and seek regional supply chain security in response to geopolitical pressures.

The partnership with Dynanonic, a recognized leader in battery materials, provides important technological expertise and market credibility. Local production will offer significant advantages in meeting EU content requirements and reducing supply chain vulnerabilities. This positions ICL to benefit from both EU incentives and the broader trend toward supply chain regionalization.

LFP technology represents a important shift in the EV battery landscape, offering a more cost-effective and resource-efficient alternative to traditional nickel-based batteries. The technology's growing adoption by major automakers validates ICL's strategic direction. The Sallent facility's planned production capacity aligns with the accelerating demand for LFP batteries in Europe's mass-market EVs.

The vertical integration with ICL's existing phosphate operations creates significant competitive advantages in raw material security and cost optimization. The facility's potential for expansion provides flexibility to scale with market growth and technological advances. This positions ICL as a key player in Europe's battery supply chain transformation.

Company continues to expand global presence in battery materials space

TEL AVIV, Israel & SALLENT, Spain--(BUSINESS WIRE)-- ICL (NYSE: ICL) (TASE: ICL), a leading global specialty minerals company, today announced it has signed a joint venture (JV) agreement with Shenzhen Dynanonic Co., Ltd. to establish lithium iron phosphate (LFP) cathode active material (CAM) production in Europe, with an initial investment of approximately €285 million. A new facility at ICL's Sallent, Spain, site is currently in 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, this time into 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 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,” 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.”

“Automotive OEMs are increasing their usage of LFP to improve the economic competitiveness of EVs,” said Isaac Chan, a partner in Roland Berger’s automotive practice. “For example, in Europe the LFP share of lithium-ion batteries will more than double to reach 35% by 2030.”

Preparation, engineering and permits for the JV site in Sallent, Spain, where ICL previously operated a potash production site, are expected to be followed by construction and subsequent operations. ICL is pleased to repurpose this location and to revitalize the roughly 25 acres of available land, as it takes leadership in bringing mass production of LFP to the EU via Spain. The location has an option for further expansion and is approximately 60 miles from the Port of Barcelona, which is accessible by rail, and is also in good proximity to planned LFP battery plants in Europe.

The JV agreement is subject to material conditions precedent, final investment estimates and regulatory approvals. ICL's share in the facility in Spain will be 80%, with the potential for modifications, pending further investment opportunities.

About ICL

ICL Group is a leading global specialty minerals company, which creates impactful solutions for humanity's sustainability challenges in the food, agriculture and industrial markets. ICL leverages its unique bromine, potash and phosphate resources, its global professional workforce, and its sustainability focused R&D and technological innovation capabilities, to drive the company's growth across its end markets. ICL shares are dual listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The company employs more than 12,000 people worldwide, and its 2023 revenues totaled approximately $7.5 billion.

For more information, visit ICL's website at icl-group.com.

To access ICL's interactive CSR report, visit icl-group-sustainability.com.

You can also learn more about ICL on Facebook, LinkedIn, YouTube, X and Instagram.

About Dynanonic

Shenzhen Dynanonic Co., Ltd. (stock code: 300769) has world–leading capabilities in lithium-ion battery core materials R&D and manufacturing, focuses on the R&D and production of nano-lithium iron phosphate and sales, and is committed to supplying core key raw materials for electric vehicles and energy storage systems. Dynanonic develops cathode materials for batteries using nanotechnology and has completely independent intellectual property rights for its products and core technologies. The company has more than 100 patents and has received more than 20 international and national certifications. Dynanonic adheres to the business philosophy of promoting enterprise development by continual technology innovation and product improvement and is also committed to providing safer and more efficient green energy to the world. The company strives to be a leader in Chinese lithium-ion battery materials and, in 2023, Dynanonic produced 213,400 mt of L(M)FP and achieved annual nameplate capacity of 455,000 mt at year-end.

Forward Looking Statements

This announcement contains statements that constitute forward‑looking statements, many of which can be identified by the use of forward‑looking words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate” and “potential,” among others.

Forward-looking statements appear in this press release and include, but are not limited to, statements regarding the proposed joint venture (JV), the JV agreement, including the expected terms and conditions contained therein, timing for construction and completion of the production facility, estimated capital expenditures related to the production facility and intentions regarding obtaining market leadership in the European market for battery materials. Forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to: estimates, forecasts and statements as to management's expectations with respect to, among other things, construction and additional costs related to the establishment of the production facility, business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, positioning, objectives and expectations, general economic, market and business conditions, supply chain and logistics disruptions, energy storage and electric vehicle growth, global unrest and conflict, governmental and regulatory requirements and actions by governmental authorities from all relevant geographies, including changes in government policy, changes in environmental, tax and other laws or regulations and the interpretation thereof, and war or acts of terror and/or political, economic and military instability in Israel and its region, including the current state of war declared in Israel and any resulting disruptions to our supply and production chains. As a result of the foregoing, readers should not place undue reliance on the forward‐looking statements contained in this press release concerning the timing of the transaction, or other more specific risks and uncertainties facing ICL, such as those set forth in the “Risk Factors” section of its Annual Report on Form 20-F filed on March 14, 2024, as such risk factors may be updated from time to time in its Current Reports on Form 6-K and other filings ICL makes with the U.S. Securities and Exchange Commission from time to time.

Forward-looking statements refer only to the date they are made, and the company does not undertake any obligation to update them in light of new information or future developments or to publicly release any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events.

IR and Press Contact – Global

Peggy Reilly Tharp

VP, Global Investor Relations

+1-314-983-7665

Peggy.ReillyTharp@icl-group.com

IR and Press Contact - Israel

Adi Bajayo

ICL Spokesperson

+972-3-6844459

Adi.Bajayo@icl-group.com

Press Contact – Spain

Lluis Rodriguez

VP, External Communications

+34-609436053

Lluis.Rodriguez@icl-group.com

Source: ICL Group LTD

FAQ

What is the value of ICL's investment in the new LFP facility in Spain?

ICL's initial investment in the LFP facility in Spain is approximately €285 million.

What is ICL's ownership percentage in the Spanish LFP joint venture?

ICL will hold an 80% share in the facility, with potential for modifications based on future investment opportunities.

Where will ICL's new LFP production facility be located?

The facility will be located at ICL's Sallent site in Spain, approximately 60 miles from the Port of Barcelona.

What is the projected market share for LFP batteries in Europe by 2030?

According to Roland Berger, LFP's share of lithium-ion batteries in Europe is expected to more than double to reach 35% by 2030.

Who is ICL partnering with for the LFP production facility in Spain?

ICL is partnering with Shenzhen Dynanonic Co., through a joint venture agreement.

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