The decision to halt the cathode material business, which also affects a similar project in Saint Louis, in the United States, follows a review of the changing dynamics of the global market. The planned investment in Sallent, which was to be located at the former mining facilities closed in the autumn of 2020, was estimated at 285 million euros and was to be carried out through a joint venture with the Chinese company Shenzhen Dyanonic.
The project's non-viability is primarily due to the lack of economic support. The company applied for a 140 million euro grant from the European Innovation Fund, but the request was denied on November 3. This lack of subsidies, combined with high investment costs and low market prices, led to the cancellation.
In the United States, the termination of the Department of Energy subsidy and the reversal of electric vehicle aid policies, initially promoted by the Biden Administration but halted by the Donald Trump government, were key factors. Furthermore, the Chinese government implemented export controls on lithium, cathode, and graphite anode materials on October 9, limiting the transfer of essential technology.
“"The installation of the factory in Sallent was meant to be a key project for Catalonia to comply with the European directive to end combustion cars and to electrify the industry."
Despite the suspension, ICL remains committed to the Bages region. The company is working with the Catalan Government and the Spanish executive to define an alternative project that allows the industrial space in Sallent to be leveraged and the budget initially allocated to the cathode plant to be used for other alternative businesses within its value chain.
