IBU-tec advanced materials AG has expanded its partnership with PowerCo SE. As part of this, the two companies have agreed to a joint development agreement and a long-term supply contract for lithium iron phosphate (LFP) cathode material. The goal is to develop an industrial production process for LFP material in Europe together. According to IBU-tec, PowerCo will make payments upon reaching technical milestones, which could total a mid-double-digit million amount within three years.
IBU-tec is also committing to significantly expanding its production capacity for battery materials. A new plant is set to be constructed in Bitterfeld, enabling a fivefold increase in capacity compared to the current level at the site. Construction is scheduled to begin in 2025 and be completed by 2028 at the latest. According to the company, financing has been secured through several building blocks. PowerCo has already secured the entire future production of the new plant for ten years contractually.
In addition to the Bitterfeld expansion, IBU-tec plans to manufacture LFP cathode material for PowerCo at its Weimar site beginning in 2026. Production is expected to reach a capacity of around 3,000 tons per year by 2028. The production volume of the agreement is estimated to be in the mid-double digits for the first three years after production begins.
Sources:
https://www.ibu-tec.com/investor-relations/financial-news/news-article/ibu-tec-advanced-materials-ag-signs-contract-with-powerco-se-for-the-production-of-battery-materials-with-a-targeted-volume-in-the-mid-double-digit-million-euro-range/
https://www.ibu-tec.com/investor-relations/financial-news/news-article/ibu-tec-advanced-materials-ag-schliesst-weitere-vertraege-mit-powerco-se-fuer-batteriematerial-mit-geplantem-jaehrlichem-volumen-im-mittleren-bis-oberen-zweistelligen-mio-euro-bereich/
