ICL Group Ltd. reported that it has signed a joint venture agreement with Shenzhen Dynanonic for the production of lithium iron phosphate (LFP) cathode active material (CAM) in Europe (the Joint Venture). The JV Agreement marks the first step in a collaboration between ICL and Shenzhen Dynanonic to achieve market leadership in the European market by bringing mass production of LFP to the European Union via Spain. Pursuant to the terms of the JV agreement, the parties intend to establish a new production facility at ICL's allent, Spain, site, where ICL previously operated a potash production site.
This project will repurpose the roughly 25 acres of available land and with an option for further expansion. The location is approximately 60 miles from the Port of Barcelona, accessible by rail and is also in close proximity to planned LFP battery plants in Europe. ICL will hold an 80% share in the Joint Venture, with the potential for modifications, pending further investment opportunities.
The initial estimate of the expected investment in the facility in Spain is approximately 285 million, however, this estimate is subject to change and may vary significantly based on final investment decisions and regulatory requirements. Closing of the Joint Venture is subject to several material conditions precedent, including the conclusion of investment estimates, approvals from both parties' boards of directors, and the finalization of ancillary agreements (such as licensing and lease agreements). Additionally, the Joint Venture requires government permits and approvals, including those from the PRC government and Spanish authorities.