The company will build the new facility on the new site of its wholly-owned Canadian subsidiary, Phostech Lithium in Quebec, using a new, proprietary production process based-on wet chemistry.
The company expects the plant to begin the commercial production for series delivery in 2012 with an annual production capacity of 2,500 tons per year, enough for producing approximately 50,000 all-electric automobiles or, alternatively, up to 500,000 vehicles with hybrid drive per year.
According to the company, the new technology of wet chemistry synthesis, helps to produce LFP, which, compared with other cathode materials for lithium ion batteries, provides higher energy density, longer service life and greater cycle stability.
Sud-Chemie-manufactured LFP, which is already used in power tools, starter batteries for passenger vehicles, and electric scooters in Europa, Asia, and North America, can also be used in storage batteries for stabilizing peak supply or for storing PV electricity.
Dr Hans Muller, member of managing board at Sud-Chemie, said: “With this investment, we are now significantly expanding our production capacity in this market of the future, which will allow us to meet the heavily increasing demand from our strategic customers in the automotive and battery industries.
“Our outstanding patent situation, high-quality manufacturing process and our already strong Life Power product brand put us in an excellent position in the fast-growing market for battery materials.”