MADRID, Jan. 17 (Xinhua) -- Shenzhen Dynanonic Co. Ltd., a Chinese battery materials producer, approved a joint venture agreement with a leading global specialty minerals company ICL on Friday to establish a lithium-ion battery plant in northeast Spain.
According to a statement issued by the Board of Directors of Shenzhen Dynanonic, the plant, with an initial investment of 285 million euros, will be located in Sallent, in the Catalan region. Shenzhen Dynanonic will hold a 20-percent stake in the investment, while ICL will control the remaining 80 percent. The partnership allows for adjustments based on future investment opportunities.
The new facility will be built on the site of a former potash production plant and span approximately 100,000 square meters. It will become the first factory in the region to produce lithium iron phosphate for electric battery cathodes, a key component in powering electric vehicles, according to the report of Spain's El Pais newspaper on Friday.
Amid the surging demand for lithium-ion batteries driven by the rapid expansion of the electric vehicle market in Europe, the companies chose Sallent for its proximity to the Port of Barcelona and its railway connection to France, which positions it as a strategic location for distribution, local media commented.
Shenzhen Dynanonic, known for its expertise in research, development, and production of core lithium-ion battery materials, is committed to supplying key raw materials for electric vehicles and energy storage systems.
Ren Wangbao, vice president of Shenzhen Dynanonic, emphasized that the joint venture aligns with the goals of both companies and capitalizes on their strengths. He said the project would strengthen his company's presence in the European market, ensure closeness to customers, and support its mission to become a global leader in new energy material solutions.
Phil Brown, president of ICL's Phosphate Solutions Division, highlighted the importance of the plant, describing lithium iron phosphate as "a critical solution for the future of Europe's energy transition."
The Catalan regional government welcomed the initiative. Miquel Samper, Catalonia's regional minister for business and labor, described electric batteries as a cornerstone of the green transition and praised the project for creating "quality jobs" in the region. ■