Israeli mining company ICL has signed a partnership agreement with Chinese firm Shenzhen Dynanonic to establish a lithium-iron phosphate (LFP) cathode factory in Sallent, Catalonia. These components are critical for the production of electric vehicle (EV) batteries, which are increasingly in demand as the automotive industry shifts toward electrification. The initial investment for the project is estimated at €285 million, though specific details regarding the start date and employment opportunities remain undisclosed.
The Catalan government has deemed the project strategic and has pledged to expedite administrative processes to facilitate its development. The factory will be constructed on the site of an old potash mine in Sallent, which has been inactive since 2020. The mine was previously operated by Iberpotash, a Spanish subsidiary of ICL.
The partnership aims to supply battery components, particularly cathodes, to the European market. Cathodes alone account for 40 to 50 percent of a battery’s total cost. Europe has been striving to establish a robust battery production supply chain, a sector where China currently holds a dominant position. The Catalan government’s Department of Enterprise and Labor has indicated that this project will complement a separate initiative by South Korean company Lotte, which is investing €400 million to build an anode factory in Mont-roig del Camp. Both projects are considered strategic, and legal measures will be implemented to streamline administrative procedures.
Catalonia is now positioning itself as a key player in the electric battery production supply chain. The factories in Sallent and Mont-roig del Camp will supply components to Volkswagen’s gigafactory in Sagunto, Valencia. Additionally, a lithium battery factory is under construction in Navalvillar, Extremadura, which will also include a lithium extraction mine.
Phil Brown, President of ICL’s Phosphate Solutions Division, described the agreement as a significant step toward Europe’s energy transition. Under the terms of the deal, ICL will hold an 80 percent stake in the project. The new factory will occupy a 100,000-square-meter area within the old mine site, marking a major advancement for the industrial infrastructure of the Bages region. The mine was closed in 2020 after its operations were relocated to a site in Soria.
Both the Catalan government and ICL view the project as a positive step toward reindustrializing the region. The Bages area, known for its industrial heritage, is expected to benefit from sustained economic activity as a result of the initiative. Miquel Sàmper, an advisor to the Catalan Department of Enterprise and Labor, emphasized that the project will enhance Catalonia’s self-sufficiency in strategic material production and strengthen its role in the electric mobility supply chain.
With this project, Catalonia is poised to play a pivotal role in Europe’s energy transition and the future of electric mobility. The region’s strategic investments in battery production infrastructure underscore its commitment to becoming a key hub in the evolving global energy landscape.
