TEL AVIV, ISRAEL & SALLENT, SPAIN -- ICL (NYSE: ICL) (TASE: ICL), a leading global specialty minerals company,  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.