ICL (TASE: ICL) has been awarded a contract worth $400 million to build a plant that will produce material for the lithium battery in St. Louis, United States.
The company received $197 million in funding following the approval of President Biden’s Bipartisan Infrastructure Law which aims to expand domestic manufacturing of batteries for electric vehicles and components currently imported from China. This is anticipated to be the country’s first large-scale facility for the production of lithium iron phosphate (LFP) cathode active material in the United States.
According to ICL, there are currently no major producers of LFP material in the US, despite the fact that demand for lithium batteries is increasing, with the adoption of electric vehicles serving as a major driver.
The factory is expected to use a domestic supply chain and, once completed, will create high-quality LFP material for the lithium battery industry globally. The completion of the project is expected by 2024. The new project adds to ICL’s energy storage assets portfolio and reflects its dedication to continue creating high-quality specialty products for industrial applications as well as for food and agriculture.
The Israel-based company already employs around 300 people in the St. Louis area. It manufactures products that go into consumer goods such as vitamins, soft drinks, toothpaste, pet food, baking powder, and detergents. The site also includes an alternative-protein facility that opened last December.