ICL Announces Plans to Develop Customer Innovation and Qualification Center

ICL (NYSE: ICL) (TASE: ICL), a leading global specialty minerals company, today announced plans to invest $30 million to develop a customer innovation and qualification center (CIQC) in North America, as the company continues to execute on its long-term plan to provide commercial solutions for the energy storage systems (ESS) market in the United States. The CIQC is expected to become a hub for ICL, its partners and its customers, as the company looks to make significant advancements in its battery materials R&D capabilities.

By working with its technology partners, ICL has developed know-how that will allow it to reduce cycle time by 50% and also provide for a significant reduction in power requirements in the production of lithium iron phosphate (LFP). Advancements like these are expected to be amplified, once the CIQC is operational, and the center is expected to be online prior to the company’s 140,000-square-foot LFP battery materials facility, which is expected to produce 30,000 metric tons of LFP annually. The design for the LFP plant has been completed and is currently undergoing a value engineering review to optimize both project costs and schedule, and this includes options for a more rapid, phased approach to production start-up.

The CIQC will allow ICL to accelerate its technology progress, while benefiting ICL battery materials customers, as they look to innovate and advance their offerings. The company is well positioned for growth now that it has already secured its first customer agreement and is working on qualifying additional potential customers’ requirements. The first multi-year relationship calls for ICL to supply LFP battery materials for next-generation battery cell production to a customer in the United States. Beginning as early as 2025, this offtake agreement is for supply of up to 10,000 metric tons annually of LFP material, aimed to comply with the Inflation Reduction Act (IRA), and includes an option to grow the supply relationship.

Demand for U.S. sourced LFP batteries is expected to continue to outstrip capacity, given recent guidance from the U.S. Department of Energy (DOE) and Department of Treasury (USDT) on foreign entity of concern (FEOC) participation and qualification of section 30D clean vehicle tax credit for consumers. The guidance from the DOE limits the participation of FEOCs in the domestic battery supply chain and supports the growth of domestic battery materials processing and manufacturing.