ICL to Build Lithium Battery Plant in the US with Aleees Partnership

ICL

ICL Starts Construction of US-Based LFP Battery Facility

Israeli specialty minerals company ICL has begun construction of a lithium iron phosphate (LFP) battery plant near St. Louis, Missouri. The facility will have a production capacity of 30,000 metric tonnes per year and is expected to start operations later this year.

This $400mn investment will be partially funded by a $197mn grant from the US Department of Energy (DOE). The grant falls under the Bipartisan Infrastructure Law, aimed at strengthening domestic clean energy supply chains.

However, the DOE funding remains frozen under an executive order signed by President Donald Trump in January 2025. Despite the uncertainty, ICL has proceeded with the project to establish its US footprint in the battery materials space.

Strategic Partnerships Secure LFP Technology Supply Chain

To support the project, ICL has partnered with Taiwan-based Aleees, a major LFP technology licensor. Aleees will help ICL establish a secure LFP supply chain for US electric vehicle and energy storage customers.

The partnership gives ICL access to Aleees' intellectual property and production expertise. Aleees also licensed its LFP cathode material technology to US battery firm T1 Energy, formerly Freyr Battery.

Meanwhile, ICL is also expanding its footprint in Europe. In January, it formed a joint venture with China’s Shenzhen Dynanonic to produce LFP cathode active materials for the European market.

The Metalnomist Commentary

ICL’s investment reflects a strategic move to onshore battery material production in response to growing US demand and political pressure. As LFP becomes the chemistry of choice for mass-market EVs and grid storage, securing localized supply chains will be critical for competitiveness and compliance. The real test will be whether DOE funding resumes under the evolving policy landscape.