ICL, a specialty minerals company, signed a memorandum of understanding (MOU) with Orbia Advance Corp., S.A.B. de C.V. Fluor & Energy Materials (OF&EM). The agreement aims to strengthen both companies’ positions in the North American battery materials supply chain.
As part of the MOU, ICL’s industrial products division will supply phosphorus trichloride (PCl3) to OF&EM, which will use it to manufacture lithium hexafluorophosphate (LiPF6) – a key component for lithium-ion batteries – at its upcoming St. Gabriel, Louisiana, facility.
ICL produces PCl3 at its locations in Gallipolis Ferry, West Virginia, and Bitterfeld, Germany, and is a global supplier of high-quality materials required for critical battery components.
Through the partnership, ICL and OF&EM aim to advance electrification in both transportation and stationary applications, while also boosting the domestic production of key battery components in North America. The collaboration is expected to enhance the performance, safety, and efficiency of batteries used in consumer electronics, energy storage, and other industries.
Anantha Desikan, EVP and Chief Innovation and Technology Officer, ICL said, “Similar to how our Phosphate Solutions division expanded into LFP battery materials in China and the U.S., Orbia Fluor & Energy Materials’ expertise in fluorine technologies makes them an ideal partner for LiPF6 solutions”.
Desikan added, “This second expansion into the North American energy storage supply chain further extends ICL’s battery materials operations, now involving our Industrial Products division”.
Miki Oljaca, Vice President, Energy Materials, Orbia Fluor & Energy Materials added, “Strategic alliances like this one between Orbia and ICL are crucial for establishing a reliable domestic supply chain for various types of lithium-ion batteries”.
As reported by marketwirenews.com, in October 2022, both ICL and OF&EM received funding from the U.S. department of energy to boost domestic battery manufacturing for energy storage and electric vehicles, reducing reliance on imported materials and components.