ICL and Dynanonic Partner to Boost LFP Cathode Production in Europe

BMW

Israeli specialty minerals company ICL and Chinese battery cathode producer Shenzhen Dynanonic have formed a joint venture to manufacture lithium iron phosphate (LFP) cathode active material (CAM) in Europe. This collaboration aims to enhance the region’s battery supply chain and support the growing demand for EV and energy storage solutions.

Repurposing the Sallent Site for LFP Production

ICL has repurposed its Sallent site in Spain, previously used for potash production, to develop the new LFP cathode production facility. The joint venture represents a strategic shift towards sustainable battery materials. The companies will initially invest €285 million ($293 million), with ICL holding an 80% stake and Dynanonic the remaining 20%.

Strengthening Europe’s Battery Supply Chain

The new LFP facility will boost Europe's domestic production of battery materials, reducing reliance on Asian imports. The demand for LFP cathodes has surged due to their cost-effectiveness, safety advantages, and long cycle life compared to nickel-manganese-cobalt (NMC) alternatives. The European EV market and energy storage sectors will directly benefit from this development.

ICL and Dynanonic’s Strategic Vision

By leveraging ICL’s European presence and Dynanonic’s expertise in LFP cathode technology, the joint venture positions itself as a key player in the battery materials industry. This investment aligns with Europe’s push for battery independence and sustainable energy solutions.

Yongxing Lithium Carbonate Output Drops in 2024 Amid Weak Market Prices

XTC New Energy Materials

Production and Sales Volume Declines Despite Capacity Expansion

Yongxing Special Materials Technology saw its lithium carbonate output and sales fall in 2024. The company produced 26,048 tonnes, down 3.9% from 2023, with sales also slipping 3.2% to 26,028 tonnes. Yongxing began mass production in 2020 and expanded capacity to 30,000 t/yr by 2022. However, demand volatility and falling lithium prices impacted overall output performance.

Revenue and Profit Fall Sharply as Market Weakens

The firm posted an operating income of 8.074 billion yuan in 2024, a 34% decline from the prior year. Net profit dropped by 69% to 1.043 billion yuan, reflecting worsening lithium market conditions. Yongxing primarily sources lepidolite from local mines in Jiangxi and supplies to major cathode makers. These include XTC New Energy, Hunan Yuneng, and Dynanonic, major players in China’s EV supply chain.

The Metalnomist Commentary

Yongxing’s performance reflects broader challenges in the lithium industry as overcapacity meets softening demand. While long-term fundamentals remain strong due to electrification, short-term oversupply will likely keep prices subdued. Producers may shift focus to cost control and strategic partnerships to weather the turbulence ahead.

BYD LFP processing deal expands supply chain with Xingfa tolling capacity

BYD, LFP

The BYD LFP processing deal adds fresh capacity as China’s EV and storage demand rises. Hubei Xingfa Chemical will process 80,000 t/yr of lithium iron phosphate for BYD. Meanwhile, the agreement reinforces BYD’s diversified LFP sourcing strategy.

The partnership runs through a subsidiary-to-subsidiary processing framework. Hubei Xingshun New Material signed with Qinghai Fudi Industrial for the tolling work. However, the parties did not disclose the start date.

Tolling capacity supports fast-growing LFP demand

The contract targets 80,000 t/yr of LFP processing over a two-year term. The deal can renew for one additional year with mutual consent. Therefore, the structure gives both sides flexibility as demand shifts.

BYD keeps expanding battery deployments across power and storage markets. BYD installed 258.282GWh in January–November, up 51pc year on year. As a result, BYD keeps tightening upstream security for LFP and related inputs.

Phosphorus chemistry players deepen battery-material integration

Xingfa has built a broader platform beyond traditional phosphorus chemicals. The company has commissioned 100,000 t/yr iron phosphate capacity and 80,000 t/yr LFP capacity. Meanwhile, it has also built 100,000 t/yr lithium dihydrogen phosphate capacity.

BYD continues to source LFP from multiple producers to avoid bottlenecks. Key suppliers include Hunan Yuneng and Shenzhen Dynanonic. BYD also buys from Jiangsu Lopal, Zhejiang Youshan, and Shandong Fengyuan.

The Metalnomist Commentary

The BYD LFP processing deal signals that tolling models now matter in China’s battery materials race. However, BYD’s supplier diversity still acts as its main hedge. Therefore, investors should track renewal terms and upstream phosphate integration.

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.