TEL AVIV, ISRAEL & ST. LOUIS-- 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.