The decision by the Israeli company ICL, in collaboration with China's Shenzhen Dynanonic, cancels an initial investment of 285 million euros intended for the site of the former Vilafruns potash mine in Sallent (Bages).
The primary reason for the suspension is the denial of a crucial grant of 140 million euros requested from the European Commission's Innovation Fund. Without this capital injection, the operation has been dropped, according to sources close to the company.
The cancellation of the project, which was announced last January, represents a severe blow to the reindustrialization plans for the Bages region.
In addition to the loss of funding, the multinational ICL justified the cancellation due to a shift in its global strategy, arguing that the demand for electric vehicles is lower than initially forecasted.
The project planned for a joint venture, with ICL controlling 80%, aiming to produce Lithium Iron Phosphate (LFP) cathode active material for the European automotive sector.
