TEL AVIV, Israel & SALLENT, Spain - ICL (NYSE: TASE:ICL) (TASE: ICL), a global specialty minerals company, has entered into a joint venture agreement with Shenzhen Dynanonic Co., Ltd., a leader in battery materials production, to establish a lithium iron phosphate (LFP) cathode active material (CAM) production facility in Europe. The partnership involves an initial investment of approximately €285 million for a new site in Sallent, Spain, aimed at expanding ICL's battery materials business and contributing to Europe's energy transition. The company's strong financial position, with a healthy free cash flow yield of 9% and robust current ratio of 1.56, positions it well for this strategic investment.
The planned facility will leverage ICL's expertise in specialty phosphates and Dynanonic's strengths in battery material production. The collaboration is expected to benefit from the growing demand for LFP in the European electric vehicle (EV) market, which is anticipated to see a significant increase in LFP usage for lithium-ion batteries.
ICL's Sallent site, previously a potash production location, will be repurposed for this venture, revitalizing the area and aligning with the company's sustainability objectives. The site's proximity to the Port of Barcelona and planned LFP battery plants in Europe positions the JV to serve the EU market effectively.
Phil Brown, president of ICL's Phosphate Solutions Division, emphasized the strategic timing and significance of this investment for the company's growth in the battery materials sector. WangBao Ren, vice president of Dynanonic, highlighted the JV's alignment with their vision to become a global provider of new energy material solutions.
The project's progression is contingent on meeting certain conditions, final investment estimates, and obtaining regulatory approvals. ICL will hold an 80% share in the Spanish facility, with the possibility of adjustments based on future investment opportunities.
ICL Group, a dual-listed company on the New York and Tel Aviv Stock Exchanges, is recognized for its sustainable solutions across various markets. In contrast, Dynanonic is known for its R&D and manufacturing capabilities in lithium-ion battery core materials, with a significant patent portfolio and international certifications.
This announcement contains forward-looking statements regarding the JV's potential outcomes and market leadership aspirations in the European battery materials sector. The information is based on a press release statement, and readers should be aware of the inherent risks and uncertainties associated with such forward-looking statements. ICL's stock has shown remarkable momentum, gaining over 10% in the past week and 28% over six months. For deeper insights into ICL's financial health and growth prospects, including 8 additional exclusive ProTips, check out the comprehensive analysis available on InvestingPro.
In other recent news, ICL Group LTD reported a 10% increase in adjusted earnings per share (EPS) to $0.11 and a 37% year-over-year rise in EBITDA for specialty-driven divisions in its third quarter 2024 financial results. The company's sales for the quarter reached $1.753 billion. ICL also announced its plans to maintain potash sales at 4.6 million metric tons for 2024 and the development of a new customer innovation center in St. Louis to support battery materials production by 2027.
In a significant development, ICL CEO Raviv Zoller announced plans to retire in early 2025. His departure is expected to align with the release of ICL's annual financial statements. Zoller's tenure was marked by enhancements in innovation, sustainability, and product profitability.
ICL's recent investment in Plantible Foods' Series B funding round was also highlighted. The investment follows ICL's initial contribution during Plantible's Series A round, reinforcing the strategic partnership between the two entities. The collaboration aims to cater to the increasing consumer preference for healthier and more sustainable food options.
Lastly, ICL and Plantible Foods introduced Rovitaris Binding Solution, which recently won the Ingredient Idol award at the SupplySide West conference. The award recognizes Rovitaris as the most innovative food ingredient of the year. These are recent developments that have shaped ICL's trajectory.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.