ICL to Lead Efforts in U.S. to Develop Sustainable Supply Chain for Energy Storage Solutions, with $400 Million Investment in New Lithium Iron Phosphate Manufacturing Capabilities
Company will receive $197 million federal grant through the Bipartisan Infrastructure Law for investment in cathode active material manufacturing facility in St. Louis
TEL AVIV, ISRAEL & ST. LOUIS--(Business Wire / Korea Newswire) January 26, 2023 -- ICL (NYSE: ICL) (TASE: ICL), a leading global specialty minerals company, plans to build a $400 million lithium iron phosphate (LFP) cathode active material (CAM) manufacturing plant in St. Louis. This is expected to be the first large-scale LFP material manufacturing plant in the United States. The company was awarded $197 million through the Bipartisan Infrastructure Law funding, which is subject to the completion of negotiations with the Department of Energy. The plant is expected to be operational by 2024 and will produce high-quality LFP material for the global lithium battery industry, using primarily a domestic supply chain. The LFP plant represents a significant expansion of ICL’s energy storage portfolio and demonstrates the company’s commitment to developing high-quality specialty products for agricultural, food and industrial applications.
While the demand for lithium batteries continues to grow, currently there are no large-scale manufacturers of LFP material in the United States. By 2025, the share of LFP batteries is expected to reach more than 30% of all battery shipments. Electric vehicle (EV) adoption is a key driver for the LFP battery market, as this industry and others - such as stationary grid storage and EV charging infrastructure - continue to look for more sustainable, safer and cost-effective solutions. By 2030, Cairn ERA forecasts global demand for the Li-ion battery market will reach more than 2,725 GWh, for a market value of more than $240 billion.
“LFP is a critical solution for the U.S. energy-storage, mobility and infrastructure market,” said Phil Brown, president of Phosphate Specialties and managing director of North America for ICL. “The $197 million investment from the Department of Energy is crucial to building a domestic manufacturer, which can compete globally while providing a much-needed safety net for American manufacturers in the EV, battery and energy-storage industries.”
ICL’s 120,000-square-foot LFP plant is expected to have two production lines built in two phases under a single roof. Each production line will be capable of producing 15,000 metric tons of LFP material per year. Phase one is expected to be complete by 2024, and full production of 30,000 metric tons is expected by 2025. The new plant will be located on ICL’s existing Carondelet campus in St. Louis.
ICL partners for the project will include Aleees, which will provide the state-of-the-art LFP process technology, and McCarthy, which will oversee the management of general contracting and is also based in St. Louis. The local community will benefit not only through more than 150 high-paying union and professional jobs, but also as ICL expands its active role in developing the next generation of ICL employees.
About the Funding from the Department of Energy
ICL is a recipient of the first set of projects funded by President Biden’s Bipartisan Infrastructure Law to expand domestic manufacturing of batteries for electric vehicles (EVs) and the electrical grid and for materials and components currently imported from other countries. Responsible and sustainable domestic sourcing and processing of the critical materials used to make lithium-ion batteries will strengthen American supply chains, accelerate battery production to meet increased demand, and secure the nation’s economic competitiveness, energy independence, and national security. The funding by the Department of Energy is the first phase of over $7 billion in total provided by the President’s Bipartisan Infrastructure Law for the battery supply chain. DOE’s Office of Manufacturing and Energy Supply Chains (MESC) is responsible for strengthening and securing manufacturing and energy supply chains needed to modernize the nation’s energy infrastructure and support a clean and equitable energy transition. MESC will manage the portfolio of projects with support from DOE’s Office of Energy Efficiency and Renewable Energy’s Vehicle Technologies Office.
ICL Group is a leading global specialty minerals company, which creates impactful solutions for humanity's sustainability challenges in the global food, agriculture and industrial markets. ICL leverages its unique bromine, potash and phosphate resources, its passionate team of talented employees, and its strong focus on R&D and technological innovation, to drive growth across its end markets. ICL shares are dually 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 2021 revenues totaled approximately $7 billion.
For more information, visit ICL's website at www.icl-group.com.
To access ICL's interactive ESG report, please click here. https://icl-group-sustainability.com/
You can also learn more about ICL on Facebook, LinkedIn and Instagram.
For more information about Aleees, please visit https://www.aleees.com/en/.
For more information about McCarthy, please visit https://www.mccarthy.com/.
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.
Funding from the Department of Energy is contingent on completion of negotiations with the Department of Energy, and the execution of a definitive agreement between ICL-IP America Inc. and the Department.
Forward-looking statements appear in this press release and include, but are not limited to, statements regarding the company’s intent, belief or current expectations. 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, 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, the potential for new COVID-19 variants, global unrest and conflict, governmental and regulatory requirements and actions by governmental authorities, including changes in government policy, changes in environmental, tax and other laws or regulations and the interpretation thereof. 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 February 23, 2022, 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230117006148/en/
ICL Group LTD
Peggy Reilly Tharp
VP, Global Investor Relations
This is a news release distributed by Korea Newswire on behalf of this company.