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

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.

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.

Contacts:

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

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