ICL (NYSE: ICL) (TASE: ICL), a leading global specialty minerals company, announced it has signed a memorandum of understanding (MOU) with Orbia Advance Corp., S.A.B. de C.V. (BMV: ORBIA) Fluor & Energy Materials (OF&EM), as both companies continue to expand their presence in the North American battery materials supply chain. The MOU provides a framework for ICL’s Industrial Products division to supply phosphorus trichloride (PCl3) to OF&EM for its use in the production of LiPF6 – a critical raw material for lithium-ion batteries – at its planned St. Gabriel, La., manufacturing plant. ICL produces PCl3 at its plants in Gallipolis Ferry, W.Va., and in Bitterfeld, Germany, and is considered a leading global supplier of this high-quality material necessary for this essential battery component.

This partnership allows ICL and OF&EM to work together to advance electrification for both transportation and stationary applications and to bring the production of this critical component to North America. It will also enable them to optimize the performance, efficiency and safety of batteries used in consumer electronics, energy storage and other applications.

“Just as our Phosphate Solutions division’s expertise in specialty phosphates helped ICL expand into LFP battery materials – first in China and then in the U.S., – Orbia Fluor & Energy Materials’ proficiency and leadership in fluorine technologies has made them an ideal partner for LiPF6 solutions,” said Anantha Desikan, EVP and chief innovation and technology officer for ICL. “In addition, this second expansion into the North American energy storage supply chain further develops ICL’s battery materials operations to now include our Industrial Products division.”

“Strategic partnerships, like the one between Orbia and ICL, are critical for establishing a secure and resilient domestic supply chain for various types of lithium-ion batteries,” said Miki Oljaca, vice president of the Energy Materials Business for Orbia Fluor & Energy Materials. “Our planned LiPF6 facility in St. Gabriel, Louisiana, will be a first of its kind in the U.S. to produce this critical electrolyte material and will support a significant portion of the domestic annual electric vehicle production.”

In October of 2022, both ICL and OF&EM were awarded funding from the U.S. Department of Energy to expand domestic manufacturing of batteries for energy storage and electric vehicles (EVs), in order to ease reliance on materials and components imported from other countries. According to McKinsey Battery Insights, the lithium-ion battery chain, which includes LFP batteries, is expected to grow by over 30% annually from 2022 to 2030, reaching a market value of over $400 billion.

Note: The content of this press release has not been edited by Fibre2Fashion staff.

Fibre2Fashion News Desk (HU)